TaxTMI 
TaxTMI 
1979 (8) TMI 115
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....nus given by the assessee to its employees is outside the purview of the payment of Bonus Act and so the amendment to s. 36(1)(ii) of the Act w.e.f. 25th Sept., 1975 will not apply to the case of the assessee. 2. The assessee is a Non-Banking financial institution and it used to lend moneys on pledges. The assessee has uniformly paid bonus to its employees at the rate of 5 months salary from 1969....
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....see took the matter on appeal before the AAC of IT. Special Range, Madras and he considered all the aspects of the case and relied on the decision of the Supreme Court in the case of Mumbai Kamgar Sabha vs. Abdulbhai Faisullabhai AIR 1976 SC 1455 wherein it was found that the scheme of the Bonus Act, 1965 as amended in 1975 will not apply to the customary bonus. The AAC held that the bonus paid by....
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....deduct any Bonus paid in excess of 20 per cent of the salary. 5. The ld. counsel for the assessee on the other hand relied on the order of the AAC and on the order of the Tribunal. In ITA No. 936/Mds/1977-78 dt. 11th Aug., 1978 in the case of M/s Madurai Ramnad Transport Pvt. Ltd. 6. The ld. Deptl. Rep. wanted us to reconsider the prior Tribunal's decision in the light of s. 17 of the Payment of....
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....f the Payment of Bonus Act was considered by the Supreme Court and it still held that the Payment Bonus Act referred to is only adjustment of customary bonus against. What s. 17 of the Payment of Bonus Act referred to is only adjustment of customary bonus payable under the Act. The Supreme Court recognised the existence of customary bonus and according to the Supreme Court in spite of s. 17 of the....