Commissioner of Income Tax vs N.C. Shah

T.D. Sugla, J.—This is an application under s. 256(2) of the IT Act, 1961, at the instance of the Department. The only question sought to be raised is :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that 40% of the bonus commission (incentive) which has been received by the assessee as per terms of employment, should be deducted in the computation of the assessee''s total income ?"

It is pertinent to mention that the Tribunal had held that incentive bonus/commission received by the assessee from the LIC of India was not salary income but income from business or profession. The Tribunal also held that on such incentive bonus/commission the assessee was entitled to deduction at the rate of 40% of the incentive bonus/commission by way of estimated expenses for earning the income for which incentive bonus was paid. It is evident that the Department has not questioned the order of the Tribunal insofar as it concluded that the incentive bonus/commission received by the assessee from LIC was income from business or profession. What it has challenged is only that 40% of the bonus/commission incentive should not have been allowed as deduction. The question that is sought to be referred to this Court is, in our judgment, a question of fact which this Court will not like to go into unless the question raised was that the finding or the conclusion by the Tribunal was perverse or without any material. In the circumstances, rule has to be and is hereby discharged. No order as to costs.