2006 (4) TMI 102

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....ent of case in each case, the following substantial question of law has been referred to this court for its opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that bonus, was a part of the normal business expenditure was covered by the net profit rate applied to the instant case?" Both the cases are in respect of the same assessee for succ....

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....ejected, inter alia, on the ground that it cannot be termed as special nature, but ordinary incident of business. However, the Commissioner of Income-tax (Appeals), while adjusting the net profit rate did not agree with the aforesaid finding of the Assessing Officer for disallowing the claim of deduction for payment made to the labourers for bonus for the assessment years in question. We may noti....

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....therefore, a relevant factor which deserves due consideration as claimed by the appellant. On further appeal, the Tribunal upheld the claim of the assessee that payment of bonus during the relevant assessment year in question was of special nature for those assessment years and consequently that amount is to be reduced from the profit by applying the net profit rate. In the aforesaid circumstanc....