2002 (12) TMI 21

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.... the manufacture and sale of yarn. For the assessment year 1992-93, the assessee claimed a sum of Rs. 23,46,558 towards payment of bonus which includes a sum of Rs. 12,81,108 a liability as per the agreement for payment of bonus entered into on December 22, 1992. In the assessment the Assessing Officer allowed deduction for a sum of Rs. 10,65,450 only which was the provision created in the accounts during the previous year and disallowed the balance of Rs. 12,81,108. The assessee challenged the above order in appeal before the Commissioner of Income-tax (Appeals). The Commissioner (Appeals) allowed the claim of the assessee for deduction of the total sum of Rs. 23,46,558 as the assessee has made the payment before the due date for filing....

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.... employer and workmen was produced before us. Condition No.1 in the terms of settlement is as follows: "The management agrees to pay all eligible employees, staff permanent, badli, casuals and trainee casuals and above daily during the bonus period from April 1, 1991, to March 31, 1992, at the rate of 8.33 + 10.67 per cent. as incentive bonus for production and attendance as an ex gratia payment based on their total earnings (basic + DA) for the accounting year 1991-92 ending on March 31, 1992, in full and final settlement of the demand for bonus and ex gratia for all the above six trade unions." In the order of the Tribunal, it was held as follows: If As held by the Supreme Court in Kedarnath Jute Manufacturing Co. Ltd. v. CIT [1971] 82 IT....