9911796707
TMI Blog1998 (11) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following questions of law to this court for opinion at the instance of the assessee : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in including excise duty paid on goods lying at the company's depot at the end of the year in the value of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utive director, Shri I. K. Agarwal, at the time of his leaving the company is an expenditure or allowance within the meaning of sub-section (5) of section 40A of the Income-tax Act, 1961 (for short "Act"). The case of the assessee-company is that it was running into losses till 1971, when Shri I. K. Agarwal took over as the executive director of the company and due to the valuable services rendere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V. B. Patel for the applicant, who submits that the amount in question cannot be regarded as salary, as it was in appreciation of personal qualities of Shri I. K. Agarwal as an employee. Mr. Desai, learned counsel for the Revenue, on the other hand, drew our attention to the order of the Tribunal, wherein, there is a categorical finding that the amount was paid as a special bonus for exceptional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he termination of his employment or the modification of the terms and conditions relating thereto :" That being so, the Tribunal was right in holding that the amount of Rs. 1,00,000 paid to Shri I. K. Agarwal at the time of his leaving the company was profits in lieu of salary under sub-clause (i) of clause (3) of section 17 of the Act. Question No. 2 referred to us, is therefore, answered in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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