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TMI Blog1990 (10) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... s referred the following question of law for the decision of this court : " Whether, on the facts and in the circumstances of the case, section 36(1) (ii) is inapplicable to the case ? " The respondent is a company. It is an assessee to income-tax. We are concerned with the assessment year 1978-79, for which the previous year ended on December 31, 1977. A sum of Rs. 2,90,180 was paid by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 36(1)(ii) of the Income-tax Act. The appeal filed by the Revenue was dismissed. It is thereafter at the instance of the Revenue, that the question of law formulated herein above has been referred for the decision of this court. We heard counsel for the Revenue, Mr. P. K. R. Menon, as also counsel for the respondent/assessee. To what extent the bonus paid to the employees is deductible as rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing conditions are fulfilled. The amount should be reasonable with reference to (a) the pay of the employee and the conditions of his service ; (b) the profits of the business or profession for the previous year in question ; and (c) the general practice in similar business or profession. The Appellate Tribunal has failed to evaluate the question that arose before it in the light of the principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal to restore the appeal to file and re-evaluate the entire matter in the light of the Bench decisions referred to hereinabove. It is for the Income-tax Appellate Tribunal to consider the matter in the light of the above Bench decisions and if it considers that it will be just and proper, in the circumstances of the case, that the matter is re-evaluated by the assessing authority, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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