2015 (1) TMI 422

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..... ome Tax Act was outside the purview of sec. 143(1)(a) of the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that excise duty did not form part of the total turn over for the purpose of computing the deduction under sec.80HHC of the Income Tax Act? The respondent is an industry and is an assessee under the Income Tax Act, 1961 (for short, the Act). In the return filed by it for the assessment year 1995-96, it claimed inter alia deduction of a sum of Rs. 2,42,83,798/- as bonus paid to the employees. The return was accepted through intimation under Section 143(1)(a) of the Act by the assessing officer. However at a later stage, he initiated steps under Section 15 .....

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..... urport of Section 143 (1) (a) of the Act cannot be sustained in law. She contends that the interpretation placed by the Tribunal on Section 154 of the Act in this behalf is too narrow and for invoking that provision, it does not make any difference whether the subject matter is an order passed under Section 143(3) or intimation under Section 143(1)(a). She further contends that once the differential amount was admittedly paid subsequent to 31st March of the concerned year, there was no way that it could have been brought under the purview of Section 43B of the Act. Sri Ch. Pushyam Kiran, learned counsel for the respondent, on the other hand, submits that the difference between the provision made for payment of bonus and the actual payment .....

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..... bility that was incurred under that head for the previous year. Even where the appropriate Government does not issue any ordinance or notification or in the absence of any agreement, an industry has its own discretion to pay the bonus of its choice, subject to statutory requirements. It is no facet of the power of the assessing officer to tell upon the justification or otherwise as to the percentage of bonus paid by an assessee. The only thing he can verify is as to whether bonus has been paid as a matter of fact. If it is paid, deduction has to be permitted under Section 43B of the Act and otherwise not. It is not even the case of the appellant that the amount of Rs. 2,42,83,798/- was not paid as bonus for that year. Another facet of this .....

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