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TMI Blog1984 (12) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... lar relief granted by the CIT(A) in the case of the assessee for the asst. yr. 1978-79 had not been accepted and a second appeal had been filed by the Department in that year. 3. We find from our own order in ITA No. 3604/Del/82 dt. 23rd Feb., 1984 that after considering the question of allowability of bonus paid in that year we had come to the conclusion that that was an allowable deduction from the income of the assessee. Since the facts are similar in this year and since we find that incentive bonus had been paid on grounds of commercial expediency, we shall upheld the order of the AAC and dismiss the Departmental appeal. 4. We shall now take up Appeal No. 1157/Del/83 filed by the assessee. 5. Objection is firstly raised against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de on the side of the assessee on account of the fact that the law had been amended by insertion of sub-s. (4) of s. 37 of the IT Act w.e.f.1st April, 1970. The above mentioned two decisions of the Hon ble High Courts had been given in the asst. yr. 1969-70 when the relevant provisions were contained of s. 37(3) of the IT Act and in r. 6C of the IT Rules. The provisions of r. 6C had been omitted as a consequence of insertion of s. 37(4) of the IT Act, 1961. The law having undergone a change and the fact having been admitted by the assessee that the accommodation had indeed been used as a guest house for various sales representatives of the assessee, the disallowance of Rs. 6000 has to be upheld. Ground No. 1 in the assessee s appeal, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had sent certain goods to this party in the year 1974 but these had been received back as the goods supplied were found to be short in quantity and unfit for human consumption. In other words, the assessee had suffered a loss in the year 1974 itself. Deduction, if any, could be claimed in the asst. yr. 1975-76 but not in the asst. yr. 1979-80 in respect of the above loss. In any case the sum of Rs. 4634 having not been taken into account for computing the income of the assessee of any previous year, it was not allowable as a deduction as a bad debt. 7.3. The rest of the debtors mentioned at S. No. 3, 4 5 above are made to be belonging to the same group. There were certain claims and counter claims between the assessee and the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been paid for that. Since the sum of Rs. 500 had been paid on account of the admission fee of Mr. Stanley, Sales Manager and since it appears to us to be an expenditure incurred for business expediency, we shall allow it. Ground No. 3 succeeds. 10. In Ground Nos. 4, 4.1 and 4.2 objection is taken to the finding of the CIT(A) by which depreciation had been denied on machinery of the value of Rs. 1,99,585. The reason why this disallowance was made was similar to the reasons which had been given by the ITAT in the assessee s own case in the asst. yrs. 1975-76 to 1978-79. It had been found by the ITAT that to a certain extent the cost of machinery used in the assessee s business had been met by some charitable organisation. Depreciation is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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