1993 (11) TMI 248

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.... to the interests of Revenue on the following points : "1. The Assessing Officer has considered in para 9 to disallow the claim for deduction for liquidated damages/bad debts of Rs. 2,65,000 but the same amount has not been included in total disallowance in para 14 of the assessment order. 2. The Assessing Officer has incorrectly allowed claim for a deduction of Rs. 88,870 being provisions for liability relating to customers' claim for reimbursement on account of the defective products. 3. Total expenditure of Rs. 19,500 duly incurred by the assessee for realising capital should have been disallowed by the Assessing Officer considering it as capital expenditure, but the Assessing Officer failed to do so. ....

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....xpenses claimed by the assessee; especially the item of Rs. 8,000 paid to C.C. Chokshi & Co. and the claim of bonus which was not in accordance with the provisions of Bonus Act. 6. We have considered the rival submissions and perused the facts on record. As regards the liquidated damages/bad debts of Rs. 2,65,000 we find that though the Assessing Officer has considered in para 9 of the assessment order to disallow the claim for deduction but the same amount has not been correctly included in the total disallowance in para 14 of the assessment order. The amount of Rs. 2,65,000 was not debited to P&L account but the same was debited to "provision for doubtful debts account". Since the same has not been deducted while computing the profits ....

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.... Bombay Stock Exchange Rs. 8,000 Listing fees paid to Ahmedabad Stock Exchange Rs. 3,500 Paid for company law matters Rs. 8,000" Regarding listing fees paid to Bombay Stock Exchange and Ahmedabad Stock Exchange such listing fees are admissible according to Board's Circular No. F.No. 10/67/65-IT(AI) dt. 26th Aug., 1965 (reproduced on page 1427 of Second Vol. of Income-tax Law by Chaturvedi & Pithisaria (Third Edition). These instructions of the Board are binding on the Assessing Officer and we accordingly hold that he rightly allowed the listing fees of Rs. 8,000 and Rs. 3,500 paid to Bombay Stock Exchange and Ahmedabad Stock Exchange respectively. 9. As regards the fee of Rs. 8,000 from the details filed before t....

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....contractual bonus. There is no categorical provision in the Payment of Bonus Act nullyfying all other kinds of bonus, nor does such a conclusion arise by necessary implication. In CIT vs. P. Alikunju, M.A. Nazir Cashew Industries (1987) 62 CTR (Ker) 206 : (1987) 166 ITR 611 (Ker) the Hon'ble Kerala High Court held that the bonus in excess of what was required under the payment of Bonus Act, 1965, specifically in terms of second proviso to s. 36(1)(ii) may be allowed on satisfaction of certain conditions. It has been held by the Delhi Tribunal in the case of Gem India Ltd. vs. IAC (1986) 26 TTJ (Del) 613 : (1986) 19 ITD 540 (Del) that where the assessee-company was paying bonus at the rate of 20% to its employees as a stipulation of empl....