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TMI Blog1983 (9) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to the income-tax assessment of M/s Shuraguwa Industries Pvt. Ltd., the assessment year is 1980-81 for which the previous year ended on 31st December 1979. The assessee-firm carries on business of structural engineers and manufactures spare parts of machineries. During this year, the assessee had debited a sum of Rs. 39,026 as bonus. In support of this claim, the assessee filed a copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nus was not payable under the Bonus Act, 1965. On appeal, the CIT(A) found that there was a settlement with the workers and the bonus fell under the category for which the payment of Bonus Act would not be applicable as held by the I.T.A. Tribunal in the case of Garware Synthetics Pvt. Ltd. vs. ITO in I.T.A. No. 3274/Bom/1980 dt. 30th April 1982 since reported in (1982) 31 CTR (Trib) 25. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no dispute about the bonus of Rs. 18,000 paid at 8.33 per cent and debited in the assessee's accounts in the accounting year ended 31st December 1978 relevant for the asst. yr. 1979-80. The present amount of Rs. 19,926 represents the additional bonus which the appellant had to pay to its workers under the Settlement reached on 30th September 1979, in the year under appeal. Clause (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Appellate Tribunal in the case of Garware Synthetics Pvt. Ltd. is directly applicable to the facts in the present case. The CIT(A) had rightly followed the said decision as the payment in question was contractual bonus which was no affected by the provisions of s. 36(1) (ii) of the IT Act, 1961. I, therefore, confirm the order of the CIT (A) and dismiss the revenue's appeal. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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