Commissioner of Income Tax vs Subhash Chand Dinesh Chand Kattha and Allied Industries (P.) Ltd.

Heard Shri R.K. Agarwal for the Revenue and Shri Vikram Gulati for the assessee.

This is an application u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act").

Admittedly, the legal position is not disputed that bonus amount paid to the workers is an allowable deduction u/s 36(1)(ii) or u/s 37 of the Act provided the same is paid in accordance with the statutory provisions of the Payment of Bonus Act, 1965, but under the garb of bonus if excess payment is made, the same is not covered either u/s 36(1)(ii) or Section 37 of the Act.

This being so, the authority referred to by learned counsel, i.e., Commissioner of Income Tax Vs. Autopins (India), has no application to the facts of this case.

Thus, the following question of law does arise out of the order of the Tribunal :

" Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the sum of Rs. 23,976 being the amount paid in excess of the maximum permissible under the provisions of the Payment of Bonus Act, 1965, was an allowable deduction u/s 36(1)(ii) or alternatively u/s 37 of the Income Tax Act ?"

The Income Tax Appellate Tribunal is directed to draw up a statement of the case and refer the above quoted question of law to this court.