1990 (8) TMI 76

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....nce 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, the Tribunal is justified in holding that the assessee is entitled to claim deduction of the bonus paid in excess of the minimum and in holding that the customary bonus paid will not attract the provisions o....

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....hereafter at the instance of the Revenue that the question of law formulated hereinabove has been referred for the decision of this court. We heard counsel. The Appellate Tribunal itself has stated that an amount of Rs. 54,197 being the excess of the bonus paid over 20% of the salary is a permissible deduction, since it was paid on the occasion of "Vishu", and so it is a customary bonus. In the....

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....s the maximum permissible under the Payment of Bonus Act, the excess so paid has to be scrutinised under section 36(1)(ii) of the Act. These aspects were not borne in mind by the Appellate Tribunal when it held that the amount paid in excess of the maximum of 20% payable under the Payment of Bonus Act is a permissible deduction, since what was paid was a customary bonus. We are afraid that the App....

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....id in excess of the minimum" which should only be a clerical mistake for "the bonus paid in excess of the maximum". In answering the question referred to this court, we reframe the question thus : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the assessee is entitled to claim deduction of the bonus paid in excess of the maximum and in hol....