2005 (11) TMI 44

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....e Tribunal, Ahmedabad Bench "A" has referred the following two questions under section 256(1) of the Income-tax Act, 1961 (the Act), at the instance of the Commissioner of Income-tax, Rajkot. "(1) Whether the Appellate Tribunal is right in law and on facts in allowing the claims of the assessee in respect of production bonus amounting to Rs. 7,32,449 apart from the staff bonus which was allowed....

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....count paid was also disallowed by invoking the provisions of section 37(3A) of the Act. The Commissioner (Appeals) confirmed both the disallowances. However, the assessee succeeded before the Tribunal. In relation to the payment of production bonus, in the impugned order dated October 27,1993, the Tribunal has recorded that (i) the payment was in pursuance of the agreement with the employees, (....

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....n to the payment in question, viz., production bonus of Rs. 7,32,449. Therefore, in the absence of any infirmity in the impugned order of the Tribunal question No. 1 is required to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. In relation to the second question it was fairly accepted by Mr. Bhatt that the discount was in the nature of reduction in t....