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TMI Blog1997 (2) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has referred the following question of law for our opinion for the assessment year 1979-80 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly held that the additional amount of Rs. 2,05,201 paid by the assessee-company to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vention of the Payment of Bonus Act and it is not liable to be allowed under section 36(1)(ii) of the Act. The assessee filed an appeal before the Commissioner of Income-tax (Appeals) against the order of assessment disallowing the sum of Rs. 2,05,201 and the Commissioner (Appeals) held that the additional wages cannot be regarded as bonus and the payment was made out of commercial consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire amount is deductible in the computation of the business income. Mr. C. V. Rajan, learned counsel appearing for the Department, submitted that six per cent. additional income should also be regarded as bonus payment and the provisions of section 36 of the Act would apply. On the other hand, Mr. Janarthana Raja, learned counsel for the assessee, submitted that six per cent. of the wages paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess of the statutory obligation cannot be regarded as bonus at all. There might have been collective bargaining by the employees which made the assessee to make additional payment. But, on that account, it cannot be regarded as bonus at all. The Appellate Tribunal found that the additional payment was made out of commercial expediency and once it is paid on the basis of commercial consideration, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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