TMI Blog2004 (11) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... tute a revenue receipt in the assessee's hands? – This question is answered in favour of the Revenue and against the assessee - Whether Tribunal ought to have upheld the disallowance of Rs. 36,404 made by the Income-tax Officer in respect of bonus paid in excess of 8.33 per cent. of the salaries paid?" - there is no dispute that the bonus that was paid was customary bonus. Therefore, it could not be said that the bonus paid in excess of 8.33 per cent, of the salaries had to be included in the income. This question is also answered against the Revenue - - - - - Dated:- 5-11-2004 - Judge(s) : BILAL NAZKI., P. S. NARAYANA. JUDGMENT The judgment of the court was delivered by Bilal Nazki J.-The following questions have been referred by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he statement of case submitted by the Tribunal, the assessee is a private limited company. During the accounting year, the assessee imported Coca-Cola concentrate from the foreign country and soft drinks were manufactured therefrom. For this purpose, the assessee had to arrange bottles which bore the trade mark embossed on them. The expenditure incurred on bottles was treated differently for different accounting fears. In the earlier assessment year, the assessee was writing off only breakages in respect of the bottles and this was being claimed as business expenditure. This method was followed from the assessment year 1967-68 to the assessment year 1975-76. However, for the assessment year 1976-77, for the first time the assessee changed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the assessee himself. On appeal, the Tribunal also accepted the contention of the assessee that the bottles had become useless. There is no difficulty in accepting such contention because of the ban imposed by the Government on preparation of concentrates of Coca-Cola, but what created the difficulty was that the Coca-Cola Corporation wrote a letter on February 2, 1978, to the assessee. In that letter, the Coca-Cola Corporation, realizing the financial difficulties created by the ban on production of Coca-Cola, made an ex gratia offer of compensation to assist the bottlers through the difficult period. As the bottles had no commercial value in India and in order to prohibit their misuse, it was proposed that after counting the bottles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dated February 2, 1978, written by the Coca-Cola Corporation by which the assessee was offered compensation. In para. 13 of the letter it stated: "As your Coca-Cola and Fanta bottles are not usable and now have no commercial value in India, and in order to prohibit their misuse, (which will be resisted, in any event, by vigorous action through the courts), it is proposed that after being counted in your plant, the bottles will be destroyed by your staff under the supervision of our personnel or appointed agents. The Corporation will not accept responsibility for the resultant cullet which the bottlers will be free to dispose of as they wish." According to the assessee, these bottles were destroyed during the accounting year itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and gains of business or profession',- (i) the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year; (ii) any compensation or other payment due to or received by,- (a) any person, by whatever name called, managing the whole or substantially the whole of the affairs of an Indian company, at or in connection with the termination of his management or the modification of the terms and conditions relating thereto; (b) any person, by whatever name called, managing the whole or substantially the whole of the affairs in India of any other company, at or in connection with the termination of his office or the modification of the terms and conditions relating thereto; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
