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TMI Blog1982 (8) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The ITO found that a sum of Rs. 61,467 was claimed as bonus. He further found that this included Rs. 24,216 which was bonus related to the year 1976. It was contended before the ITO that in the earlier year the company was running in loss and no bonus was paid and no provision was made. It was further stated that there was an amendment requiring the payment of a minimum bonus of 8.33% an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, did not accept the claim of the assessee and he observed that for an earlier year also the assessee had the responsibility of providing for bonus which was a statutory liability. The CIT (Appeals) declined to consider the letter evidencing the settlement of dispute and upheld the disallowance of Rs. 24,216. 3. It has been submitted before us that the disallowance of the claim was based on mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he minimum of the bonus rate but a higher rate. The fact that the bonus paid for the current year was partly calculated on the basis of an average salary of an earlier year cannot convert it into bonus for earlier year. The payment of the bonus is also not denied. We are of the view that the claim for bonus should have been allowed in full as it related to the current year and was based on an agre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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