TMI Blog1966 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ANDA., M. H. BEG. JUDGMENT The judgment of the court was delivered by MANCHANDA J.-This is a case stated under section 66(2) 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay any bonus as there was no profit in the half year ending 30th June, 1949. The union took the case to the labour court in July, 1950, 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 16,275 was not the liability of the relevant accounting year. The assessee preferred an appeal to the Appellate Assistant 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion to be referred. At the time when this court called for a statement of the case under section 66(2) of the Act, there was a decision 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 yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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