1997 (2) TMI 49

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....aja undertakes to file vakalath on behalf of the respondent. The Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has referred the following question of law for our opinion for the assessment year 1979-80 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly held that the additio....

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....epresented the bonus and the excess amount paid was in contravention of the Payment of Bonus Act and it is not liable to be allowed under section 36(1)(ii) of the Act. The assessee filed an appeal before the Commissioner of Income-tax (Appeals) against the order of assessment disallowing the sum of Rs. 2,05,201 and the Commissioner (Appeals) held that the additional wages cannot be regarded as ....

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.... bonus, it is deductible under section 37 of the Act and the entire amount is deductible in the computation of the business income. Mr. C. V. Rajan, learned counsel appearing for the Department, submitted that six per cent. additional income should also be regarded as bonus payment and the provisions of section 36 of the Act would apply. On the other hand, Mr. Janarthana Raja, learned counsel f....

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....ddition to the statutory bonus and the money that was paid in excess of the statutory obligation cannot be regarded as bonus at all. There might have been collective bargaining by the employees which made the assessee to make additional payment. But, on that account, it cannot be regarded as bonus at all. The Appellate Tribunal found that the additional payment was made out of commercial expedienc....