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TMI Blog1997 (10) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... s a reference under section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue and the following questions have been referred by the Tribunal for answer by this court : "1. Whether, on the facts and in the circumstances of the case, the learned Tribunal was right in law in holding that the provision towards bonus payment at Rs. 1,09,932 was allowable for deduction? 2. Whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the return of income. The return was filed on August 8, 1984. During the assessment proceedings, the issue was decided on the assessee's reasoning that bonus was part of the salary or wages and, therefore, it did not come within the ambit of "fund for the welfare of employees". The Assessing Officer, on the contrary, held that it was a fund for the welfare of the employees. According to the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with effect from April 1, 1989. Therefore, it was not in existence at that time and clause (b) was not applicable, because the bonus did not fall in the extended expression of the fund for the welfare of the employees and, accordingly, the Tribunal permitted the deduction. We have considered the submissions of learned counsel for the parties and are of the opinion that the view taken by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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