Disallowance of bonus

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Raja P (Querist)

08 April 2015 Hello Madam/Sir,
A company has provided in its P&L a sum of Rs. 1.2 crore for payment of bonus in the financial statements. But as per the ordinance passed by the govt in the month of july to pay the bonus at the increased rate, the company paid Rs. 2.5 cr before filing ROI. whether the entire amount of bonus paid is allowed in the Income Tax for that FY.Is there any case law representing the above situation.
Kindly solve the issue as early as possible.
Thanks in advance

TARUN DHINGRA

TARUN DHINGRA (Expert)

08 April 2015 Amount u/s 43B is dis-allowable if the expenses account for in books but not paid before filing ROI. As the expenses are not account for in books and correspondingly not reflected in Financial hence the allowability of same does not arise.

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Raja P

Raja P (Querist)

09 April 2015 Thank u for your reply sir.
The company paid the excess amount because of the order passed by the government which says to pay the amount retrospectively.so, they have taken in the income tax calculation for that F.Y.

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