IN THE HIGH COURT OF JUDICATURE ANDHRA PRADESH AT HYDERABAD TUESDAY THE TWENTYSECOND DAY OF JUNE TWO THOUSAND AND TEN PRESENT THE HONOURABLE SRI JUSICE B. PRAKASH RAO AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN REFERRED CASE No. 1 4 2 OF 1996 {under section 256 (1) of the Indian Income Tax Act, 1961 in RA.No.667, 668, 669/Hyd/93 arising out of ITA.Nos. 1506 to 1508/Hyd/90) Andhra Pradesh : ITAT Hyderabad Bench ‘A’} Between: The Commissioner of Income-tax Visakhapatnam …. Applicant V/s. Shri MVPR Prasad Visakhapatnam. …. Respondent Counsel for the Applicant : Sri S.R. Ashok Counsel for the Respondent: None appeared THE HONOURABLE SRI JUSTICE B. PRAKASH RAO AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN REFERRED CASE No.1 4 2 of 1996 J U D G M E N T : (Per the Hon'ble Sri Justice B. Prakash Rao) RC.No. 142 of 1996 is referred to this Court by the Income-Tax Appellate Tribunal, A.P., Hyderabad under section 256 (1) of the Indian Income Tax Act, 1961 in RA.No. 667, 668 and 669/Hyd/93, dated 30-8-1994 arising out of ITA.Nos. 1506 to 1508/Hyd/90, ITAT Hyderabad Bench ‘A’ on its file for decision on the following question of law. 2. Heard the learned standing counsel for the Revenue. Though none appeared for the respondent. 3. The question referred for our opinion is as under: Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that 40% of incentive bonus should be allowed as an expenditure in addition to the Standard Deduction under section 16 (i) more so, when the expenditure involved, if any, in travelling is covered by the Conveyance Allowance and Addl. Conveyance Allowance provided by the employer and exempted under section 10 (14) of the I.T. Act, 1961 ? 4. It is represented that the matter is squarely covered by the judgment of the Supreme Court and of this Court in 214 ITR-368. 5. Following the same, the question referred for our opinion is answered accordingly in favour of the revenue. 6. Revision Case is accordingly disposed of. No costs. __________________________ JUSTICE B. PRAKASH RAO ___________________________________________ JUSTICE RAMESH RANGANATHAN 22-06-2010. I s L THE HONOURABLE SRI JUSTICE B. PRAKASH RAO AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN REFERRED CASE No. 1 4 2 OF 1996 Judgment of the Division Bench delivered by the Hon'ble Sri Justice B. Prakash Rao) Circulation Entry No. Date: 22-06-2010 COMPUTER No. 43 Court Master: I s L