TMI Blog1988 (4) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... nity of being heard. (2) Without prejudice to aground No. 1 above on the facts and in the circumstances of the case and in law the learned CIT(A) erred in directing the ITO to allow the assessee's claim for Double Shift allowance. (3) Without prejudice to ground No. 1 above, on the facts and in the circumstances of the case and in the law, the learned CIT(A) erred in directing the ITO to allow the full amount of wages claimed by the assessee and deduction. In the assessment order, it is mentioned that the ITO requested the assessee to produce certificate from Labour Department about the working days of the factory so that the claim for extra shift allowance for plant and machinery could be properly determined. The assessee did not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d No. 4 is as follows :— "On the facts and in the circumstances of the case and in law the learned CIT(A) erred in directing the ITO to allow the assessee's claim for deduction of a sum of Rs. 9,478 on account of bonus." The ITO had stated that the assessee had made a provision for bonus but had not paid the full amount and that allowance could be made only on the basis of actual payment. He accordingly disallowed Rs. 9,478. The CIT(A) observed that the assessee followed mercantile system of accounting and that the bonus calculated in accordance with the provisions of the Payment of Bonus Act had been provided for and deduction had been claimed in respect of said provision Consequently, the said amount represented liability of the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. We accordingly direct the ITO to allow deduction of the entire amount. 8.The second ground relates to disallowance under s. 80VV of the Act. The assessee objected before the CIT(A) to the disallowance of audit fees amounting to Rs. 2,050. The CIT(A) observed that the bill of the auditor indicated that the auditor had charged Rs. 1350 for representation before the IT Authorities and Rs. 700 for conveyance expenses in relation to the said representation. According to the CIT(A) these expenses were covered under s. 80VV and since the income was negative, the question of any allowance did not arise. He accordingly confirmed the disallowance Rs. 2050. After hearing the parties, we find that as far as the amount of Rs. 700 was concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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