2009 (3) TMI 521

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..... bject of disbursing bonus to the workers. The Assessing officer allowed the sum actually paid before the due date for filing the return and the balance. The Commissioner (Appeals) deleted the disallowance and this was upheld by tribunal. Held that- assessee was entitled to the deduction made towards bonus. The assesese had made the payment prior to the date of omission of the proviso and payment m .....

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..... that the assessee had provided in the accounts a sum of Rs. 73,42,496 as bonus and ex gratia payable to the employees. It was explained by the assessee that on account of a strike by the workers from November 6, 1994 to December 15, 1994, the assessee was not able to pay the full bonus on or before the due date for filing the return of income. The assessee handed over a sum of Rs. 59,77,503 on No .....

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..... appeal before the Commissioner of Income-tax (Appeals). The Commissioner (Appeals) held that the payment to the trust being irrevocable actually amounted to payment of bonus to the workers within the stipulated time limit and, therefore, deleted the portion of the amount disallowed by the Assessing Officer. Aggrieved by that order, the Revenue has filed an appeal before the Income-tax Appellate T .....

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..... 3. We heard the learned counsel appearing for the Department and perused the materials on record. 4. From the finding recorded by the Tribunal, it is clear that the amount of bonus, which has been disallowed by the Assessing Officer has been parted with by the assessee company well prior to the date prescribed for payment of such bonus and prior to November 30, 1994, and it is also an admitte .....

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..... uction made towards bonus. The assessee had made the payment prior to the date of omission of the proviso, the payment made to the trust being irrevocable would tantamount to payment of bonus to the workers. When that being so, we do not find any error in the order passed by the Tribunal and as such, the questions of law are answered in favour of the assessee and as against the Revenue. Accordingl .....

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