2007 (2) TMI 92

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....lia disallowed a sum of Rs.13,08,387/- being bonus paid in excess of provision made, and held that the same will be allowed on payment basis in the following assessment year. 3. Aggrieved against the said order of the assessing officer, the assessee went on appeal before the Commissioner of Income-tax (Appeals), who, by order dated 28.10.1993, upheld the order of the assessing officer, following its earlier order, holding that where the quantum of bonus is decided by way of a settlement between the workers and the Management, it is only a contractual liability and hence, deduction can be claimed only in the year in which the actual quantum of bonus  payable in excess of the provision in the account became an ascertained liability.&n....

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....n claim the amount paid after the end of the accounting year to the extent the same was in excess of the provision that had been made in the accounts, as an item of expenditure in the year of account, held as follows: "Section 19 of the Payment of Bonus Act, 1965, sets a time-limit for payment of bonus and provides that the bonus payable shall be paid in cash by the employer within eight months from the close of the accounting year, where there is no dispute and where there is a dispute pending before any authority under section 22 of the Payment of Bonus Act, within one month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute. Therefore, there can be no doubt whatsoeve....