1985 (7) TMI 8 - HC - Income Tax

Summary

The High Court of Calcutta dismissed the Revenue's application under section 256(2) of the Income-tax Act, 1961. The court upheld the Tribunal's decision to allow the deduction for a customary bonus paid by M/s. Babcock & Willcox of India Ltd. to its employees. The court found that the bonus was paid on commercial expediency and fell within the range allowed by the Bonus (Amendment) Ordinance. The court concluded that no specific question of law arose in the case. The rule was discharged without costs.