TaxTMI 
TaxTMI 
2012 (11) TMI 1077
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll appeals were heard together and are being disposed of by way of this common order for the sake of convenience. The identical ground of appeal in all three years are against upholding the addition on account of bonus paid to the Contractor's labourers. 2. ITA Nos. 284 & 285/Ahd/2010 were originally dismissed by Co-ordinate 'D' Bench, Ahmadabad, by applying CIT vs. Multiplan India (Pvt.) Ltd., 38 ITD 320 (Del), vide order dated 05.01.2011 in all three years. But the Co-ordinate 'D' Bench, Ahmadabad vide order dated 03.02.2012 has allowed the Miscellaneous Applications filed by the appellant for recalling the order for deciding on merit. 3. Now the assessee's appeals in all three years are entertained on merit. 4. The factual matrix of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the matter before the CIT(A) who had dismissed the assessee's appeal for A.Y. 03-04 & 04-05 vide order dated 10.12.2009 and held as under: "2.3 I have considered the submission made by the appellant and the observation of the A.O. The only issue to be verified during the current proceedings, in view of the direction of the Hon'ble ITAT, is whether the payment of bonus was customary as per the trade and as per the prevalent custom or examples to show that it is customary to pay bonus to the employees of the contractor. Admittedly as stated by the CIT(A) and noted by the Hon'ble ITAT, the labourers did not belong to the assessee and since they belong only to the contractor the assessee was neither under legal obligation nor under contractua....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the sale figures from A.Y. 02-03 to 07-08 and explained that sale had grown up Rs. 16.82 crore in A.Y. 02-03 to Rs. 37.63 crore in A.Y. 07-08. The appellant had been paying bonus regularly from A.Y. 02-03 to 07-08 as customary. He also relied upon the circular F. No.8/2/68-IT (AI), dated 18.10.1968, where it has been clarified by the CBDT that expense incurred on the occasion of Deewali and Muhurat are in the nature of business expenditure. It has been decided not to lay down any monetary limits for the purpose of their allowance of the income assessments subject to the Income Tax Officer having satisfied that the expenses are admissible as deduction under the law and rather no expenses of personal, social or religious nature. He has also....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pellant to prove that the bonus paid by the appellant to the labourers of the contractor falls under custom prevailing or not and decide the issues, accordingly, after giving adequate opportunity of being heard to the appellant. Accordingly, on this issue, we set aside the order of the CIT(A) to the A.O. for de novo in all three years. 8. The remaining one ground in A.Y. 05-06 is against confirming the addition on account of foreign travelling expenses at Rs. 1,35,750/- by the CIT(A). The A.O. observed that foreign travelling expenses were incurred of Rs. 1,35,750/- on Shri Murli Adnani who was neither the director nor an employee of the company. The reasonable opportunity of being heard was given. The reply of the appellant was not found ....