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TMI Blog1985 (5) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1978-79 as the actual payment was made during that year. But the claim was rejected by the ITO for the assessment year 1978-79 on the ground that the assessee was following the mercantile system of accounting and the last date for payment of bonus, after the extension allowed by the Labour Commissioner, which was September 1976, was not relevant to the assessment year 1978-79. The bonus was payable for the year 1974-75 relevant to the assessment year 1976-77 as the assessee closed its books on 31st of October. It had applied to the Labour Commissioner for extension of time under section 36 of the Payment of Bonus Act, 1965. It was claimed that until the Labour Commissioner decided the matter and issued necessary orders, the liability wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act." It is, thus, clear that in section 36 is a power given to the Government to exempt certain categories from the operation of this Act. Thus, it would appear that the Government can exempt an establishment or class of establishments, from one or any of the provisions of this Act on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit, so however, that the total period so extended shall not in any case exceed two years." It is, thus, clear that the order is passed under section 19 and not under section 36. As rightly argued by the learned departmental representative, a postponement of the payment does not mean that the liability itself did not accrue on the said date. The bonus became due and payable in the accounting year 1974-75. It accrued in that year but the payment was postponed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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