2011 (12) TMI 667

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....R A. K. Garodia (Accountant Member) This is an assessee's appeal directed against the order of Ld. Commissioner of Income-tax (Appeals)-VI, Baroda dated 30-11-2010 for assessment year 2007-08. The ground raised by the assessee is as under:- "2. The learned Commissioner (Appeals) erred in confirming addition of ₹ 1218627/- being provision for bonus, to the book profits under sect....

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....he matter before Ld. CIT(A) but without success and now the assessee is in further appeal before us. 3. It was submitted by Ld. AR of the assessee before us that as per the provision of payment of Bonus Act, the assessee is liable to pay bonus @ 20% of eligible salary for the year and amount payable was computed at ₹ 12,18,627/- and the same was provided in the books of account as per appli....

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....sions and perused the materials on record and gone through the orders of authorities below. We find that it is noted by Ld. CIT(A) in para-5.2a of his order that the assessee has not made any submission as to why the provision of bonus was certain liability. Before us also, no such evidence has been placed on record to show and establish that the provision was for ascertained liability and in our ....

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....and therefore, in view of these facts that equal amount was paid in the next year, there appears to be bona fide case of the assessee and hence, for natural justice, in our considered opinion, the assessee deserves one more opportunity in the facts and circumstances of the present case. Therefore, we set aside the order of Ld. CIT(A) on this issue and restore the matter back to the file of AO for ....