1998 (3) TMI 19

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....he assessee ?" The assessee is carrying on insurance business and was assessed in the status of an association of persons. In computing the income of the assessee for the assessment year 1973-74, the relevant accounting year ended on December 31, 1972, the assessee made a provision of Rs. 44,541 towards bonus and claimed the same as deduction from its business income in addition to the claim for deduction of actual payment of bonus. The claim of the assessee for deduction of the provision was made on the basis that the assessee-company got merged with the General Insurance Corporation during the course of the calendar year 1972 and, therefore, it made a provision for bonus as it was the last year of its business. The Income-tax Officer rej....

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....l for the Revenue submitted that the assessee had been claiming deduction towards bonus allowance on the basis of the actual payment and it was allowed and it is not permissible for the assessee to make the claim on the basis of the provision for bonus in addition to the claim for deduction of actual payment made by the assessee, and if the claim of the assessee for actual payment and the provision for bonus are allowed, it would distort the income of the assessee and, therefore, the Tribunal was not justified in allowing both the claims of the assessee. Learned counsel for the assessee supported the order of the Income-tax Appellate Tribunal. We have carefully considered the submissions of learned counsel. The Revenue has not disputed the....