TaxTMI 
TaxTMI 
1996 (6) TMI 13
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....alue of unavailed leave should be allowed as deduction in computing the total income of the assessee for the assessment years 1972-73 to 1975-76? (R. A. Nos. 442 to 445) 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is entitled to the deduction of Rs. 1,18,216 being the recoverable bonus paid to the employees written off in the assessment year 1974-75? (R. A. No. 444) 3. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the payments made to the employees under the Voluntary Retirement Scheme are admissible deductions in computing the total income of the assessee for the assessment years 1974-75 and 1975-76 ? (R. A. Nos.....
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....3 (CIT v. Simpson and Co. Ltd. (No. 1) [1998] 230 ITR 703) in the case of the same assessee, dated June 10, 1996. Accordingly we answer question No. 3 in the affirmative and against the Department. So far as question No. 2 is concerned, it relates to deduction of Rs. 1,18,216 being the recoverable bonus paid to the employees written off in the assessment year 1974-75. This sum had been paid as advance to the assessee's employees on October 11, 1971, under the agreement dated October 6, 1971, with the stipulation that it would be recovered subsequently. The assessee submitted that the matter was later discussed with the union and it was agreed not to recover the same in order to maintain good industrial relations. It was resolved at the mee....
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....ld govern the present case also. But it remains to be seen that the abovesaid decision of this court is distinguishable on the facts. According to the facts arising in T. C. No. 1080 of 1980 (see [1997] 225 ITR 648), there was a resolution by the board of directors not to recover the amount paid by way of recoverable bonus earlier. But, at the same time, in the above resolution, it was also resolved to adjust the above amount to bonus paid account in the accounts for the current financial year. Therefore, what was paid earlier was treated as payment made in the current financial year. It is under those circumstances, this court held that the payment is only bonus and not loan. Inasmuch as there is no finding by the Tribunal as to whether th....