9911796707
TMI Blog2021 (11) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... nt allowable u/s 37(1) - HELD THAT:- Identical substantial question of law was considered by a Division Bench of this Court in Lakshmi Vilas Bank Ltd. [ 2014 (4) TMI 826 - MADRAS HIGH COURT] held that there being no restriction or prohibition under Section 37 of the Income Tax Act, 1961 on the claim for deduction on the ex-gratia payment given in the form of an incentive to the workman out of busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 10.01.2014 made in M.P.No.205/Mds/2013 in I.T.A.No.931/Mds/2011 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2006-07. 2.The appeal was admitted on 04.09.2014, on the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it was a type of incentive given to those employees, who did not fall under the provisions of the Payment of Bonus Act. The claim of the assessee was rejected holding that the same could not be treated as one falling under business expediency referred to under Section 37(1) of the Income Tax Act, 1961 specifically excluding the expenditure covered under Sections 32 to 36 of the Act and more so, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as considered as a head of deduction. In this the Tribunal referred to the decision of the Calcutta High Court reported in (1994) 208 ITR 1002(Cal) [CIT vs. National Engineering Industries Ltd.]. The Tribunal further considered that the payment was a matter of business expediency. Even assuming for a moment that the amount paid was in excess of what is prescribed in the Payment of Bonus Act, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue's case deserves to be dismissed at the admission stage itself. 5. In the result, the Tax Case (Appeal) is dismissed. No costs. Consequently, the connected miscellaneous petition is closed." 4.In the aforementioned decision, the Division Bench referred to the decision of the Calcutta High Court in CIT vs. National Engineering Industries Ltd. reported in (1994) 208 ITR 1002 (Cal), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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