Commissioner of Income Tax vs Mangilal Jain

A.R. Tiwari, J.—The applicant (Commissioner, Bhopal) has filed this application u/s 256(2) of the income tax Act, 1961 (''the Act'') seeking direction to the Tribunal to state the case and refer the under-noted question of law arising out of its order dated 16-7-1991 passed in IT Appeal No. 582 (Indore) of 1988 after rejection of the application R.A. No. 300 (Indore) of 1988 on 20-11-1991 for the assessment year 1982-83, for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that incentive bonus and additional conveyance allowance granted to the Development Officer of LIC was not a part of salary and that the assessee was entitled to claim 40 per cent expenses out of it ?"

We have heard Shri Vivek Sharan, the learned counsel for the applicant and Shri S.C. Goyal, the learned counsel for the non-applicant/assessee.

Both the parties submitted that the question requires to be reshaped and reframed as under :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to claim 40 per cent expenses out of the amount received by him by way of incentive bonus or commission ?"

Both the parties submitted that the Tribunal has been directed to state the case and refer the aforesaid reshaped and reframed question to this Court for consideration by common order dated 1-3-1996 passed in CIT v. M.L. Jain [Misc. Civil Case No. 203 of 1992, dated 1-3-1996], CIT v. M.L. Jain [Misc. Civil Case No. 207 of 1992, dated 1-3-1996], CIT v. S.C. Nigam [Misc. Civil Case No. 208 of 1992, dated 1-3-1996], CIT v. S.C. Nigam [Misc. Civil Case No. 209 of 1992, dated 1-3-1996], CIT v. S.C. Nigam [Misc. Civil Case No. 210 of 1992, dated 1-3-1996] and CIT v. M.L. Jain [Misc. Civil Case No. 216 of 1992, dated 1-3-1996]. The counsel for the applicant, therefore, submitted that similar order may be passed in this case also. There is no objection to this prayer.

In the result, we allow this application and direct the Tribunal to state the case and refer the above noted question as mentioned in para 3 for our opinion as expeditiously as possible.

We, however, make no orders as to costs. Counsel fee for each side is, however, fixed at Rs. 750, if certified.