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2014 (10) TMI 998 - AT - Income TaxAddition u/s 43B r.w.s. 36(1)(ii) V/s allowable business expenditure u/s 37 - “good work reward” - assessee has not submitted evidence to show that actual payment has been made before filing the return of income as bonus - whether “good work reward” constitutes bonus within the meaning of the section 36(1)(ii)? - assessee is engaged in providing recruitment consultancy - HELD THAT:- As decided in SHRIRAM PISTONS AND RINGS LTD. VERSUS COMMISSIONER OF INCOME-TAX [2008 (4) TMI 273 - DELHI HIGH COURT] such expenditure paid for good work reward is allowable as business expenditure u/s 37 (1) of the Ac. These payments were not of the type contemplated by the Payment of Bonus Act. It was held that it was an ex gratia payment or some sort of reward given to an employee for the good work done by him and would therefore, fall within the category of expenditure incurred for the purpose of business expediency and for improving the working of the assessee. Therefore, it would not fall within the meaning of section 36(1)(ii) of the Act but would fall within the ambit of section 37 of the Act. - decided in favour of assessee.
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