2017 (8) TMI 131

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....el For the Respondent : Shakeel Ahmad ORDER The appeal is directed against the order of the Income Tax Appellate Tribunal [ITAT] dated 31.03.2006 in respect of the Assessment Year Commissioner of Income Tax Vs. Bannari Amman Sugars Ltd. [2012] 349 ITR 708 (SC) 1997-1998. The following three substantial questions of law have been raised in this appeal. 1. "Whether on the facts and in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion No. 1 is with regard to production incentive bonus. A Division Bench of this Court in Commissioner of Income Tax Vs. Raza Textiles Ltd. (2006) 281 ITR 229 (All) has held that where incentive bonus had been paid as a reward of good attendance and efficiency to the workers, it is deductible under Section 37 of the Act. Therefore, the Tribunal has not erred in allowing deduction in respect of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(Appeals) accepted the claim. The Tribunal has affirmed the order of the CIT(Appeal) in this regard. The argument is that in view of subsection (4) of section 37 of the Act which stood at the relevant time all expenses incurred by the assessee on any accommodation of the nature of the guest house after 28.02.1970 are not allowable. Subsection (4) of Section 37 of the Act as it existed reads ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....any ambiguity. It clearly lays down that no allowance is permissible in respect of any expenditure incurred in respect of any accommodation in the nature of guest house after 28.02.1970. In the present case, admittedly the expenditure incurred in respect of the guest house is after the above cut of date and as such no allowance is available under Section 37 in respect thereof. The Tribunal h....