1990 (10) TMI 46

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....OORNAN J.-At the instance of the Revenue, the Incometax Appellate Tribunal has referred the following question of law for the decision of this court : " Whether, on the facts and in the circumstances of the case, section 36(1) (ii) is inapplicable to the case ? " The respondent is a company. It is an assessee to income-tax. We are concerned with the assessment year 1978-79, for which the pre....

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....he bonus paid was contractual and so it is not hit by the first proviso to section 36(1)(ii) of the Income-tax Act. The appeal filed by the Revenue was dismissed. It is thereafter at the instance of the Revenue, that the question of law formulated herein above has been referred for the decision of this court. We heard counsel for the Revenue, Mr. P. K. R. Menon, as also counsel for the responde....

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....an be claimed as deduction under section 36(1)(ii) of the Act provided the following conditions are fulfilled. The amount should be reasonable with reference to (a) the pay of the employee and the conditions of his service ; (b) the profits of the business or profession for the previous year in question ; and (c) the general practice in similar business or profession. The Appellate Tribunal has fa....

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.... the Income-tax Appellate Tribunal, but, at the same time, we direct the Appellate Tribunal to restore the appeal to file and re-evaluate the entire matter in the light of the Bench decisions referred to hereinabove. It is for the Income-tax Appellate Tribunal to consider the matter in the light of the above Bench decisions and if it considers that it will be just and proper, in the circumstances ....