Law: Income Tax Act, 1922

Section: 10(2)(x),66(2),24(2),4(1)(c),2(4),10(2)( 6)

Income-tax Act, 1922 -- Sections 4(1)(c), 10(2)(vi) Proviso Sections 10(2)(x)(b), 10(2)(xi), 24(2), 66(1), 66(2)-- Bonus -- Bank having head office in India and branch in Pakistan -- Loss sustained by the Pakistan branch -- Bonus declared by the Head office keeping in view overall financial condition of the bank -- Payment of bonus by Pakistan branch to employees in Pakistan in pursuance of direction by head office -- Whether admissible deduction in Pakistan -- Held yes -- Bad debt -- Reference -- Question of law or fact -- tribunal's finding that the debt being irrecoverable was admissible deduction -- Whether gives rise to question of law -- Held no -- Depreciation -- reference -- Question of law or fact -- Tribunal's finding that unabsorbed depreciation should be treated in accordance with the proviso to Sec. 10(2)(vi) -- No further direction in this regard -- Finding, whether rise to question of law -- Held no -- Bonus of employees -- Non-resident company making profit outside Pakistan but company's branch in Pakistan running in loss -- Payment of bonus to employees of such company's branch in Pakistan -- Held, not unreasonable but legitimate business expenditure -- Bad debt -- Income-tax Officer estimating that it was premature to hold debt as irrecoverable -- Conclusion of Appellate Tribunal that such debt was recoverable -- Held, a question of fact -- Refusal by Tribunal to refer such question upheld -- Appellate Tribunal observing in its order that unabsorbed depreciation claimed by assessee should be treated in accordance with proviso to Section 10(2)(vi) but not intending to give any direction in this regard -- Decision of Tribunal in refusing to refer question upheld --JUDGMENTThe judgment of the court was delivered by QADEERUDDIN AHMED J.--These applications have been made under sub-section (2) of section 66 of the Income-tax Act, 1922, with the object of obtaining directions of this Court to the Income-tax Appellate Tribunal to refer the questions mentioned in the applications.2. One question is common to all the eight applications. It is as follows:-"Whether on the facts and circumstances of the case, the Tribunal was justified in allowing bonus…