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2022 (4) TMI 691 - HC - Income TaxDisallowance u/s 40A(2) - Grant of bonus to the Directors (Relatives) - Non justifiable kind of services rendered to earn such a huge amount of bonus to a person specified under Section 40A(2)(b) - no business correlation in terms of business output or growth of business relating to the payment was shown by the Respondent/assessee - HELD THAT:- This Court finds that the disallowances made for similar reasons for the Assessment Years 2013-14 and 2014-15 were directed to be deleted by the DRP as well as CIT(A) and the Appellant had accepted the said decisions. Undoubtedly, the principles of res-judicata and estoppel are not applicable in taxation matters. However, it has been held that a departure from a finding during the past years would result in a contradictory finding. This Court in AMD Metplast Pvt. Ltd. [2011 (12) TMI 320 - DELHI HIGH COURT] as well as in CIT v. Career Launcher India Ltd.[2012 (4) TMI 440 - DELHI HIGH COURT] has upheld grant of bonus by companies to its directors. Consequently, this Court is of the view that there is no bar on payment of bonus and the issue whether bonus is to be granted or not is essentially a question of fact. In the present case, none of the authorities below have opined that grant of bonus to the Directors would either endanger the existence of the corporate entity or was prohibited under The Payment of Bonus Act, 1965 or was not proportionate to the services rendered by the respondent-Director. In the previous assessment years similar payment of bonus to the respondent-Director has been upheld. Consequently, this Court is of the view that consistency of approach, uniformity and certainty must be maintained. Accordingly, this Court is in agreement with the Tribunal’s decision that as no distinguishing feature had been brought to its notice, the direction to delete the disallowance in the previous Assessment Years must be followed. In view of the above, no substantial question of law arises for consideration
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