9911796707
TMI Blog1979 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ng glasses. It follows the calendar year as its year of account. For the year 1963, the Assistant Labour Commissioner by an order dated November 18, 1965, directed the assessee to pay bonus to its workers. It appears that subsequently at the instance of the assessee by an order dated December 24, 1965, the assessee was given time to make the payment by 31st of January, 1966. In its assessment for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year it was not an allowable deduction. In this view of the matter, the order of the AAC in this behalf was reversed and that of the ITO was restored. At the instance of the assessee, the following question of law has been referred for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in concluding that the liability to pay the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing into account all the income and all the expenditure relating to the period, whether such income has actually been received or not and whether such expenditure has been actually paid or not. There being no dispute in the instant case that the assessee follows mercantile accounting system and that the liability to pay the disputed amount of bonus arose as a result of the order of the Assistant L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. This sub-section provides for the method of accounting and it says that income chargeable under the head " Profits or gains of business or profession " or " Income from other sources " shall be computed in accordance with the method of accounting regularly employed by the assessee. The proviso reads : " Provided that in any case where the accounts are correct and complete to the satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clear provisions contained in the Act as noted above and also because of the admitted facts of the case. In our opinion, therefore, the Appellate Tribunal was right in holding that the liability in regard to payment of bonus amounting to Rs. 15,273 arose in the previous year relevant to the assessment year 1966-67 and did not relate to the assessment year 1967-68. We answer the question re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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