2009 (3) TMI 521

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.... Raviraja Pandian J.- The Revenue is on appeal against the order of the Income-tax Appellate Tribunal, Madras "A" Bench, dated November 25, 2003, made in I. T. A. No. 2428/Mds/1996. 2. The assessee is a company engaged in the business of manufacture and sale of yarn and fabrics. The assessment for the assessment year 1994-95 was completed on February 23, 1996 on a total income of Rs. 56,16,750. I....

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.... with the provisions of section 43B(c). The Assessing Officer held that the payment made to the trust could not be considered as disbursement of bonus to the workers. The payment of bonus had not been done on or before November 30, 1994. The Assessing Officer allowed a sum of Rs. 14,01,726 actually paid before the due date for filing the return and disallowed the balance of Rs. 59,40,770 under sec....

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....nus to the workers to a trust before the due date for filing of the return was sufficient compliance with section 43B(c) of the Income-tax Act, 1961 and therefore, the amount could not be disallowed ? 2. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the amount transferred to the trust was allowable as a deduction even though....

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....as follows : "no deduction shall, in respect of any sum referred to in clause (b), be allowed unless such sum has actually been paid in cash or by issue of a cheque or draft or by any other mode on or before the due date as defined in the Explanation below clause (va) of sub-section (1) of section 36, and where such payment has been made otherwise than in cash, the sum has been realised within fi....