1998 (11) TMI 107

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....er section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal (the "Tribunal"), has referred the following questions of law to this court for opinion at the instance of the Revenue : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the expenses incurred on stevedoring charges and port dues for loading and unl....

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....in is whether the assessee is entitled to deduction of ex-gratia payment of Rs. 1,58,828 by way of bonus to the workmen. The Tribunal has allowed this claim of the assessee under section 37 of the Income-tax Act, 1961 (the "Act"). Mr. R. V. Desai, learned counsel for the Revenue, submits that in case of expenditure in the nature of bonus paid to the employees for the services rendered, section 36(....

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....is extent, it is agreed that the Tribunal was wrong in its conclusion. Mr. Inamdar, however, submits that ex-gratia payment in this case has been made to the workers who were not covered by the Payment of Bonus Act. That being so, the claim of the assessee for deduction should have been decided by the Tribunal by applying the test laid down in the second proviso to section 36(1)(ii) of the Act. He....