2014 (4) TMI 826

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....Department JUDGMENT (The Judgment of the Court was made by Chitra Venkataraman.J.,) Revenue seeks admission of the Tax Case (Appeal) relating to the assessment year 2008-09 raising the following question of law: "Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessee is entitled for deduction of ex-gratia payment made to the employ....

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.... and more so, in particular, when Section 36(1)(ii) specifically deals with payment of bonus as a head of deduction. The Assessing Officer held that the assessee was not entitled to have the deduction considered under Section 37(1) of the Act. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who confirmed the order of the Assessing Officer. Hence, the....

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....nus Act, the same would merit consideration as a deduction and that being the case, the Tribunal held that the payment made by the assessee to its employees who were not covered under the provisions of the Payment of Bonus Act was in the nature of ex-gratia payment as an incentive to the employees to be considered for deduction under the provisions of Section 37(1) of the Income Tax Act,1961. 3....