THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO REFERRED CASE NO :208 of 1996 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) In this case, under Section 256(1) of the Income Tax Act, 1961, the following question is referred to this Court for opinion: “Whether, on the facts and in the circumstances of the case, the ITAT is correct in law in holding that the assessee is entitled to deduction at 40% as expenditure from out of the incentive bonus received by him ignoring the decision of the A.P. High Court in the case of K.A. Chowdary v. C.I.T., A.P.I., Hyderabad and others (W.P.No.7216/1983), dated 10.12.1987?” When the matter was taken up, it is submitted by both the Counsel that the above referred question is covered by a judgment of this Court reported in “ Commissioner of Income Tax Vs. B. Chinnaiah and others[1]. Following the above judgment, the above referred question is answered in favour of the revenue. Accordingly, the reference is answered. __________________________ Justice T. Meena Kumari _____________________________ Justice Nooty Ramamohana Rao Date: 23rd March, 2010 nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO REFERRED CASE NO :208 of 1996 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 23/03/2010 [1] 1995 Income Tax Reports Vol.214 Page No.368