2001 (10) TMI 25 - HC - Income Tax

(i) Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that amounts of Rs.2, 60, 142 and Rs.5, 403 paid to the employees and officers of the company were admissible revenue expenditure of this year? - (ii) Whether on the facts and in the circumstances of the case the amounts of Rs.2, 60, 142 and Rs.5, 404 did not constitute an ex gratia payment by the company? - both the Commissioner of Income-tax (Appeals) and the Tribunal had recorded findings of fact as to how the payment was made by way of additional bonus on the basis of the decisions taken at the board of directors meeting. It was also noticed that the payment was made after due sanction and on the basis of the norms prescribed by the Bureau of Public Enterprises. The findings are essentially factual giving rise to no question of law.

Summary

The High Court of Delhi ruled on a case involving payment to employees as admissible revenue expenditure for the assessment year 1975-76. The Tribunal upheld the payment as additional bonus based on board decisions, finding no question of law. The reference was disposed of accordingly.