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2014 (4) TMI 826 - HC - Income TaxEntitlement for deduction of ex-gratia payment - Whether the Tribunal was right in holding that the assessee is entitled for deduction of ex-gratia payment made to the employees since bonus cannot be paid as the employees are excluded from the category of bonus under the Payment of Bonus Act Held that:- The Tribunal rightly was of the view that the payment was made to those employees who did not fall within the purview of the Payment of Bonus Act - Relying upon Commissioner Of Income-Tax Versus National Engineering Industries Limited [1993 (7) TMI 40 - CALCUTTA High Court] - the payment was a matter of business expediency thus, the payment made by the assessee to its employees who were not covered under the provisions of the Payment of Bonus Act was in the nature of ex-gratia payment as an incentive to the employees to be considered for deduction u/s 37(1) of the Income Tax Act,1961 the order of the Tribunal is upheld Decided against Revenue.
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