1989 (7) TMI 70

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....is a petition under section 256(2) of, the Income-tax Act, 1961, with a prayer for directing the Tribunal to state the case and refer the following question of law to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in allowing the deduction of Rs. 97,287 on account of 'bonus' when such liability was determined under the agreement executed....

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....id circumstances that the petitioner filed an application under section 256(1) for referring the aforesaid question of law. On the Tribunal dismissing the said application, the present petition has been filed. In our opinion, the answer to the aforesaid question is self-evident. It cannot be disputed that the payment of bonus is clearly linked and related to the carrying on of the business. It ....