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Issues Involved:
1. Interpretation of u/s 36(1)(ii) of the Income-tax Act regarding bonus payments. 2. Application of u/s 41(1) of the Income-tax Act on taxable sum determination. Interpretation of u/s 36(1)(ii) - Bonus Payments: The petitioner sought reference on whether the Income-tax Appellate Tribunal correctly confirmed the deletion of an addition of Rs. 8,21,755 made by the Inspecting Assistant Commissioner u/s 36(1)(ii) for bonus paid in excess of the prescribed limit. The Tribunal and Commissioner of Income-tax (Appeals) found that the payments made, including various types of bonuses and an ex gratia payment, were not covered by u/s 36(1)(ii) but were allowable as revenue expenditure for business expediency u/s 37 of the Act. The Tribunal concluded that these payments were not of the type contemplated by the Payment of Bonus Act, hence u/s 36(1)(ii) was not applicable. The Tribunal's finding that the payments were for business expediency and covered by u/s 37 is a factual determination, making the answer to the question self-evident. Application of u/s 41(1) - Taxable Sum Determination: Regarding the second question, the Tribunal concurred with the Commissioner of Income-tax (Appeals) that there was no evidence to show that any liability had ceased to exist. It was found that there was consolidation of accounts and no liability had been written off. As the fact was that the liability continued to exist, the provisions of u/s 41 were deemed inapplicable. Since the determination of whether the liability continued to exist is a factual matter, the provisions of u/s 41 were not applicable in this case. Consequently, the petition was dismissed with no order as to costs.
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