IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 125 of 1995 For Approval and Signature: Hon'ble MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE KUNDAN SINGH ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements? 2. To be referred to the Reporter or not? 3. Whether Their Lordships wish to see the fair copy of the judgement? 4. Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? -------------------------------------------------------------- COMMISSIONER OF INCOME TAX Versus MAYUR J JOSHI -------------------------------------------------------------- Appearance: MR MANISH R BHATT for Petitioner MR MANISH J SHAH for the Respondent. -------------------------------------------------------------- CORAM : MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE KUNDAN SINGH Date of decision: 06/05/98 ORAL JUDGEMENT (Per R.K.Abichandani,J) The Income-tax Appellate Tribunal has referredthe following question for the opinion of this Court under section 256(1) of the Income-tax Act, 1961. "Whether the Appellate Tribunal is right in law and on facts in directing the ITO to allow deduction of 40% of incentive bonus towards expenses for earning the same ?" 2. Similar question had come up for consideration before this Court in ITR No.54 of 1993 with other cognate matters. For the reasons given in our judgment dated 27.4.1998,in the said group of matters, we hold that the Tribunal was right in directing the ITO to allow the deduction of incentive bonus towards expenses for earning the same, but only to the extent of reimbursement of expenses actually incurred upto the maximum limit of 30% of the incentive bonus earned by the assessee. The question is accordingly answered in the affirmative against the revenue and in favour of the assessee. The Reference stands disposed of accordingly with no order as to costs. **** ***darji