COMMISSIONER OF INCOME TAX Vs. AUTOPINS INDIA

JUDGEMENT

(1.) THE petitioner seeks reference of the following two questions to this Court:

(2.) AS regards question No. 1, the respondent had paid to its workmen bonus under the Payment of Bonus Act as well as other types of bonus such as production bonus, attendance bonus and incentive bonus. In addition thereto, an ex gratia payment of Rs. 1,08,751 was also paid. The CIT (A) as well as the Tribunal came to the conclusion that the aforesaid types of payments which were made were not under the provisions of S. 36(1)(ii) of the INCOME TAX ACT, 1961, but were payments which were allowable as revenue expenditure having been incurred for the purpose of business expediency. In other words, the findings of the Tribunal were that the payment was made for the purpose of the assessee's business and would be clearly covered by the provisions of S. 37 of the Act. These payments were not of the type contemplated by the Payment of Bonus Act and, therefore, S. 36(1)(ii) was not attracted. The aforesaid finding that the payment was made for the purpose of business expediency is a pure finding of fact and, in any case, the answer to the question proposed is self -evident.