The respondent/assessee filed its income tax return for the year, 1986-87, in which an amount of Rs.1,29,730 was shown as the expenses, having been paid towards the bonus to its employee. The Assessing Officer, disallowed the bonus to the extent of 50% and added it back to the income of the assessee; against the above, the assessee, went in appeal and the CIT Appeal, has deleted the and back. Aggrieved of the above, the department approached the Tribunal, but without any success.
Hence this appeal, through which the answer to the following question has been solicited:--- "Whether under the facts and circumstances of the case, the learned Income Tax Appellate Tribunal was justified to delete the and back under the head bonus in violation of the provisions of section 23(viii)(b) of the Income Tax ordinance, 1979?"
2. It has been argued by the learned counsel for the appellant that the provision of section 23(viii)
(b), when read in the light of the proviso thereto, the question of bonus has to be determined, on the basis of the Criteria of reasonableness, with relations to the pays of the employees; the profits of the business or profession for the year in question and the general practice in similar business or profession. But these factors have been ignored by the CIT Appeal and also the Tribunal.
3. We are afraid, that the above contention has no force. Because from the order of the two forums below, it is clear that the above criteria was kept in view, while allowing the bonus to the assessee.
Thus in the facts and circumstances of the case, where the question of reasonableness has been determined, particularly, at the level of CIT no case for interference has been made out. Dismissed. .