2011 (7) TMI 524

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.....   The Tax Case Appeal relates to the assessment year 1990-1991.   2. The assessee is a closely held company, which had filed a return, for the assessment year 1990-1991, on 24.12.1990, declaring a total income of Rs.36,63,900/- and a sum of Rs.32,72,274/-, as per the computation, under Section 115J of the Income Tax Act, 1961.   3. The assessee had made a provision for labour w....

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....heir wages or salary. The actual payments made in the subsequent year was Rs.10,25,069/-, which was, in fact, in excess of the provision. Further, the nature of the claim had already been dealt with in an earlier order, dated 16.6.1990, relating to the assessment year 1987-1988. In such circumstances, the deduction claimed by the assessee should be allowed.   5. The Commissioner of Income Ta....

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....mmissioner of Income Tax (Appeals), dated 27.6.1991, the Revenue filed an appeal before the Income Tax Appellate Tribunal, Chennai Bench. The only ground raised by the Department, in the said appeal, was that the Commissioner of Income Tax (Appeals) erred in allowing a sum of Rs.9,33,430/-, as a provision for labour welfare expenses, when a sum of Rs.10,25,069/- had been, actually, spent during th....

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....er of the Tribunal, dated 16.3.2001, the Revenue has filed the present appeal before this Court.   8. Learned standing counsel appearing on behalf of the Revenue contended that the Tribunal erred in law in not considering the fact that the provision made by the assessee was not actually for welfare expenses, but for bonus and incentives and that the actual payment made in the subsequent year....