2018 (2) TMI 743

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..... Respectfully following the decision of the tribunal we direct that the impugned addition made by the AO be deleted. - Decided in favour of assessee
Hon'ble Sri N.V.Vasudevan, JM And Shri Waseem Ahmed, AM For the Appellant : Shri N.C.Mondal, FCA For the Respondent : Shri A.K.Tiwari, CIT ORDER Per N.V.Vasudevan, JM This is an appeal by the Assessee against the order dated 16.05.2016 of C.I.T.(A)-12, Kolkata relating to A.Y.2011-12. 2. Grounds of appeal raised by the assessee reads as follows :- "l. THAT on facts of the case, the Ld. Commissioner of Income Tax (Appeals)-12, Kolkata was wrong by not considering the fact of the case and by confirming the addition made by the Ld. Assessing Officer under the head 'Bakshis' of & .....

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..... AO found that the assessee could not produce relevant vouchers and could not also justify the business expediency of these expenses. The AO therefore disallowed the claim of the assessee for deduction of the aforesaid expenses while computing income under the head ' income from business' . 4. On appeal by the assessee the CIT(A) confirmed the order of the AO. Before CIT(A) the assessee pointed out that the payment of Bakshis and Tips was made to casual workers like water boys, canteen boys, Security staffs etc during Durga Puja in the nature of ex-gratia/bonus and the said payments are in the nature of contractual obligation though unwritten. The assessee pointed out that such expenses were being paid since long and was part of the salary/ .....

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..... tions of the tribunal.:- "6. Ground no 2 and 3 is against the disallowance of expenditure of an amount paid as Tips & Baksis by the bank to casual workers on festive occasion. The assessee submits that these payments were made to casual workers like water boys, canteen boys, security staffs ete. during annual festivals like Durga Puja and Eid. It was submitted that the payment is in the nature of ex-gratia/bonus. The break-up of these payments, as made by different branches of the bank was given. These payments were authorised by appropriate resolutions of the Board of Director of the bank. The Assessing officer as well as the Ld. CIT (A) did not allow this expenditure on the ground that there was no commercial expediency behind incurring .....

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