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2016 (12) TMI 233 - AT - Income TaxDisallowance u/s 43B on account of bonus - Held that:- The amount of incentive is being paid to the extent of salary. In such circumstances, where the said payment has been made in majority as equivalent to the salary due, cannot be termed as bonus. This is an incentive which has been paid by the assessee out of his business consideration and would not partake the nature of bonus, merely because the nomenclature applied by the assessee is bonus. The second aspect is that the said amount allegedly claimed as bonus has been credited to the accounts of employees and nothing is shown as payable in the books of account by the assessee. In the entirety of the above said facts and circumstances, there is no merit in applying the provisions of section 43B of the Act which are strictly applicable to the payment of bonus. The nature of payment made by the assessee to the employees is not bonus and is not covered under the Bonus Act and hence, no merit in disallowance of expenditure claimed by the assessee. Accordingly, the Assessing Officer is directed to allow the claim of assessee in entirety. - Decided in favour of assessee
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