1997 (2) TMI 79

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....ssessment year 1974-75, at the instance of the Commissioner of Income-tax, the following two questions of law have been referred to this court for its opinion by the Income-tax Appellate Tribunal, Ahmedabad Bench "B", said to be arising out of its order in Income-tax Appeal No. 1939/Ahd./80 : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allow....

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....ed for, it cannot be allowed on the basis of payment. On appeal, the Appellate Assistant Commissioner by treating the entire amount of Rs. 4,46,458 referring to bonus as liability of 1970-71, allowed the same as a permissible deduction on the ground that the assessee is maintaining the bonus liability account on cash basis or on actual payment basis. The Tribunal affirmed the finding of the App....

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....e liability of bonus in respect of a particular year, which depends upon the determination of allocable surplus and is known only after settlement of final accounts and statutory adjustments thereafter is determinable only after the close of the accounting year and in such cases where the provision on an estimated basis is not made in the accounting period itself but the claim is made only subsequ....