Case Law Details
DCIT Vs District Cooperative Bank Ltd. (ITAT Delhi)
The assessee has claimed before us that the amount of closing allowance has been paid to the employees from year to year in percentage terms of salary and therefore duly quantifiable provision. The Ld. DR also could not controvert this fact that the amount of closing allowance is quantifiable in respect of the each employee. It is also not in dispute that the amount was incurred wholly and exclusively for the purpose of the business. In our opinion, when amount of provision is quantifiable, same cannot be said as an unascertained liability. Accordingly, same is allowable under section 37(1) of the Act as incurred wholly and exclusively for the purpose of the business of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the Revenue is directed against order dated 30/11/2016 passed by the Ld. Commissioner of Income-tax (Appeals)- Moradabad [in short ‘the Ld. CIT(A)’] for assessment year 2013-14 raising following grounds:
1. The learned CIT(A) is erred in law as well as in facts while deleting the addition of Rs.1,15,000/- made by the Assessing Officer u/s 43B of the Income Tax Act, 1961 regarding bonus payable shown by the assessee while the same has not been paid on or before due date of filing return of income.
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