TMI Blog2007 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... .12.91 in response to a notice u/s. 143(2) admitting a total income of Rs.6,43,610/-. The assessing officer inter alia disallowed a sum of Rs.13,08,387/- being bonus paid in excess of provision made, and held that the same will be allowed on payment basis in the following assessment year. 3. Aggrieved against the said order of the assessing officer, the assessee went on appeal before the Commissioner of Income-tax (Appeals), who, by order dated 28.10.1993, upheld the order of the assessing officer, following its earlier order, holding that where the quantum of bonus is decided by way of a settlement between the workers and the Management, it is only a contractual liability and hence, deduction can be claimed only in the year in whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ltd [(2000) 241 I.T.R. 53], cited supra, this Court, while dealing with the issue whether the assessee can claim the amount paid after the end of the accounting year to the extent the same was in excess of the provision that had been made in the accounts, as an item of expenditure in the year of account, held as follows: "Section 19 of the Payment of Bonus Act, 1965, sets a time-limit for payment of bonus and provides that the bonus payable shall be paid in cash by the employer within eight months from the close of the accounting year, where there is no dispute and where there is a dispute pending before any authority under section 22 of the Payment of Bonus Act, within one month from the date on which the award becomes enforceable or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as an item of expenditure in the year of account." 7. Admittedly, in the instant case, as rightly held by the Tribunal, the amount paid after the end of the accounting year, which was in excess of the minimum bonus prescribed under the Bonus Act and what is determined as bonus payable by the employer was only a settlement between the workers and the management and not on the demand made by the workers to settle the disputes persisting between them. Hence, the law laid down in the above said case is squarely applicable to the present case. 8. In view of the settled proposition, the questions of law raised in this appeal are answered in the affirmative, against the Revenue and in favour of the assessee. Accordingly, the appeal stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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