https://www.taxtmi.com/caselaws?id=794977 Employee bonus disallowance under section 36(1)(ii) requires examination of the tax auditor's clarification and whether the payment was otherwise payable as profits or dividend; where the audit reporting is claimed to be erroneous and payment is claimed within the section 43B framework, the matter requires fresh factual consideration. The issue is restored to the Assessing Officer. Interest income alleged to have been reported twice and previously assessed in the transferor entity's hands must be verified from departmental records before sustaining an addition. That issue is also restored for re-examination. The core principle is that verifiable material supporting a tax claim cannot be conclusively rejected without inquiry. en-us Wed, 25 Mar 2026 00:00:00 +0530 Wed, 15 Jul 2026 08:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794977 Employee bonus disallowance under section 36(1)(ii) requires examination of the tax auditor's clarification and whether the payment was otherwise payable as profits or dividend; where the audit reporting is claimed to be erroneous and payment is claimed within the section 43B framework, the matter requires fresh factual consideration. The issue is restored to the Assessing Officer. Interest income alleged to have been reported twice and previously assessed in the transferor entity's hands must be verified from departmental records before sustaining an addition. That issue is also restored for re-examination. The core principle is that verifiable material supporting a tax claim cannot be conclusively rejected without inquiry. Case-Laws Income Tax Wed, 25 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794977