1973 (6) TMI 17

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..... Act. The assessee in this case was assessed under the said Act for the assessment year 1966-67, and its income for the assessment year was determined at Rs. 11,61,925.78 which was set off against losses of the earlier years. In determining the said income, the Agricultural Income-tax Officer disallowed certain items. In this case we are concerned only with two items, viz : (1) staff and labour bo .....

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..... the business in the relevant accounting year. But it is not in dispute that the provision for payment of bonus was made during the year though it was actually disbursed later. The Tribunal went into the question as to whether the amount set apart for payment of bonus is, in any way, inflated and ultimately said, " we have no suspicion that the provision made during the year is, in any way, inflate .....

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..... (1) cannot be brought under the residuary provision in section 5(1). But a similar contention has been negatived by this court in State of Madras v. Glenburn Estates Ltd. and State of Madras v. Balmadies Plantations Ltd. In view of those decisions, the contention that section 5(e) cannot be invoked in respect of bonus paid to the staff cannot be accepted. The next item in dispute relates to the .....

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