TaxTMI 
TaxTMI 
2018 (2) TMI 743
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....e by the Ld. Assessing Officer under the head 'Bakshis' of Rs. 3,66,554/- and 'Tips & Bakshis" of Rs. 63,050/- which are allowable expenses under section 37 of the Income Tax Act, 1961. 2. THAT on facts of the case, the Ld. Commissioner of Income Tax (Appeals)-12, Kolkata was wrong by not considering the fact of the case and explanation given by the appellant that the expenses were in the nature of salary/wages paid as festival bonus during Eid/Durga Puja to casual staffs like peon, lift man, security staff etc. employed by the appellant through another service provider which is also a co-operative society and such expenditures are very much incidental to and for the purpose of carrying on day to day business of the appellant....
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....paid since long and was part of the salary/wages. The assessee submitted that the payments were not voluntary but obligatory. The assessee also pointed out that the service of the daily/ casual workers were necessary for normal and smooth conduct of day to day business of the assessee. By long usage it has become a custom in the business of the assessee. The assessee also pointed out that payments were made from head office, regional office and 44 branches of the assessee located in different parts of West Bengal and vouchers were kept in the concerned branch. The non production of vouchers at the time of the proceedings is because of the fact that sufficient time was not allowed by the AO to produce the same. The assessee filed some sample....
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....s no commercial expediency behind incurring this expenditure and that the explanation is not satisfactory. The Id. Counsel for the assessee the disallowance is bad in law the assessee has produced sufficient evidence in the form of vouchers and receipts in evidence of any payment of Tips & Baksis. Payments were made by the Head Office, Regional Offices as well as 44 branches situated in different parts of West Bengal. Such payments are made after due authorization from the management. The revenue authorities were wrong in coming to a conclusion that there is no commercial expediency in making these payments. The disallowance arbitrarily unjustified. Hence we allow this ground of the assessee." 8. The DR pointed out that no evidence whatso....