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TMI Blog2015 (10) TMI 1494X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 18.10.2011 of Assessing Officer passed on the objections taken by the assessee. ii. That the learned Commissioner of Income Tax (Appeals) has erred in confirming an addition of Rs. 7,82,834/- treating the same as bonus by applying section 43B whereas the same was an Inam payment allowable u/s 37 of the Income Tax Act, 1961. The said payments are not hit by section 43B of the Income Tax Act, 1961. iii. The assessee company craves leave to add/alter 2. The brief facts of the case are that the appellant is engaged in the business of manufacturing and sale of tyres, tubes, hubs and accessories for cycle and rickshaw. The appellant filed the return of income for the assessment year 2004-05 on 31st August, 2004 declaring total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial available on record. The issue in appeal is covered by the decision of Delhi Bench of ITAT passed in ITA No. 9/Del/2013, A.Y. 2008-09, dated 31.08.2014, wherein it was held as follows: "We have heard both the sides on the issue. The Hon'ble jurisdictional High Court in the case of Shriram Pistons & Rings Ltd. (cited supra) has held as under:- "35. The third question that has been referred for our consideration relates to "good work reward" and whether it constitutes bonus within the meaning of the section 36(1)(ii) of the Act. 36. The Tribunal has noted that the word 'bonus' has not been defined anywhere including in the Payment of Bonus Act, 1965. However, for the purpose of industrial law, four types of bonus have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, the reward is given to the employee. Consequently, the "good work reward" cannot fall within the ambit of section 36(1)(ii) of the Act as contended by the Revenue. 40. In CIT vs. Autopins (India) [1991] 192 ITR 161, a Division Bench of this court had occasion to consider payment of various kinds of bonus such as production bonus, attendance bonus and incentive bonus and whether they were within the contemplation of the Payment of Bonus Act, 1965. It was held that such types of bonus as well as ex gratia payment would not fall within the provisions of section 36(1)(ii) of the Act and that they were payments allowable as revenue expenditure having been incurred for the purpose of business expediency. These payments were not of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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