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TMI Blog1966 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income-tax Act, 1922 (hereinafter referred to as the Act). The question referred is : " Whether the amount of Rs. 6,975, awarded by the Labour Appellate Tribunal in a subsequent year was allowable as a deduction in the assessment year in question ? " The material facts are these : The assessee is a private limited company. In the relevant previous year for 1952-53 assessment year, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50, and the conciliation officer, as he was then called, rejected the worker's claim. An appeal thereupon was preferred to the industrial court which remanded the case to the conciliation officer with the direction that bonus should be allowed on the basis, of the profits of the full accounting year. The system of bonus payment was changed from the calendar year, hitherto followed by the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Commissioner who held that as the industrial court had given its award within the accounting year on 12th May, 1951, and allowed the bonus of Rs. 9,300 for the half year ended 30th June, 1949, the said sum should be allowed as a deduction against the profits of the accounting year ended 30th June, 1951. The balance of Rs. 6,975 was disallowed by the Appellate Assistant Commissioner on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Bombay High Court in Commissioner of Income-tax v. Nagri Mills, where a view had been taken that, even in the case of an assessee who follows the mercantile system of accounting, the bonus, subsequently determined, relating to an earlier assessment year, can be allowed in the earlier assessment year. Since then, however, a decision of the Supreme Court in Commissioner of Income-tax v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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