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2005 (12) TMI 70 - HC - Income TaxPayment of bonus - year of allowability - "Whether, on the facts and circumstances of the case, the Tribunal was right in law in reversing the order of the Assessing Officer confirming the disallowance of Rs. 66,577 being payment of bonus of earlier years?" - because the assessee switched over from cash system of accounting to mercantile system of accounting, it appeared that the assessee had claimed double deduction : one on the basis of cash payment, and another on the basis of mercantile system of accounting, namely, the provision made. However, apart from the fact that this might be a necessary concomitant in the year of change of system of accounting, what is more material is that the assessee had been consistently paying bonus on cash basis in the past after the end of the accounting period and the same modality was adopted in the year under consideration. Therefore, to state that this was payment relatable to earlier years is not absolutely correct. – order of tribunal is confirmed
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