TMI Blog2014 (4) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ct – 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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? 2. While completing the assessment under Section 143(3) of the Income Tax Act, 1961, the Assessing Officer found that the assessee had claimed deduction on the ex-gratia payment made to empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeals), who confirmed the order of the Assessing Officer. Hence, the assessee went on further appeal before the Income Tax Appellate Tribunal. The Tribunal pointed out that the payment in the instant case was made to those employees who did not fall within the purview of the Payment of Bonus Act. The provisions under Section 36(1)(ii) of the Income Tax Act, 1961 covered specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for deduction under the provisions of Section 37(1) of the Income Tax Act,1961. 3. Aggrieved by this view of the Tribunal, the present appeal has been preferred by the Revenue. 4. We agree with the view expressed by the Tribunal that there being no restriction or prohibition under Section 37 of the Income Tax Act, 1961 on the claim for deduction on the ex-gratia payment given in the form o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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