2018 (11) TMI 1562

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....or the Respondent. P.C: Revenue is in appeal against the Judgment of the Income Tax Appellate Tribunal (the Tribunal), dated 4th September, 2015. Following question is presented for our consideration:" Whether on the facts and in the circumstance of the case and in law, the Tribunal erred in deleting the additions made on account of provisions of performance related pay to director and staff....

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....unal. The Tribunal by the impugned judgment dismissed the Revenue's appeal, making following observations: "We have considered the rival submissions of counsel for both the parties on either side and gone through the material and evidence available on records. The case of the revenue is that the addition so made by the AO should not be deleted by the CIT(A). We find from the order of the....

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....es, it stands that there is no reason for disallowing the expenses claimed regarding payment of PRP to the Director since records of the assessee show that they are bonafide expenses which was crystallized. Accordingly, we see no reason to interfere in the findings of the CIT(A). Apart from this, the issue of disallowance of provisions has already been decided by the Tribunal in assessee's own....

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....s also made soon thereafter. Tax at source was deducted while making such payments. The Tribunal, therefore, concluded that the liability to make payments had crystallized. The payments could not made only because approval of the Board of Directors, was not forthcoming. 4. We do not find any error in the view of the Tribunal. The principle that when a liability has accrued but the computation t....