COMMISSIONER OF INCOME TAX Vs. GUNWANTRAI HARIVALLABH JANI

JUDGEMENT

(1.) THIS is a reference under Section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue and the following questions have been referred by the Tribunal for answer by this court :

(2.) WHETHER there was any material on record and if so, whether they were significant for the Tribunal to hold that the legal liability was in fact incurred during the accounting period ?"

(3.) IN fact Clause (c) of Section 43B of the INcome-tax Act came to be inserted for the first time with effect from April 1, 1989. Therefore, it was not in existence at that time and Clause (b) was not applicable, because the bonus did not fall in the extended expression of the fund for the welfare of the employees and, accordingly, the Tribunal permitted the deduction.