Bonus paid as CTC to Employees cannot be Disallowed u/s 43B of Income Tax Act: ITAT grants Relief to

The Income Tax Appellate Tribunal (ITAT) ruled that bonus payments included in Cost to Company (CTC) cannot be disallowed under Section 43B of the Income Tax Act. Renault India received relief as ITAT held that bonus payments were part of CTC and not contingent liabilities. ITAT emphasized that CTC components must align with employment terms and cannot be arbitrarily disallowed under tax provisions. This decision clarifies tax treatment of CTC components like bonuses, ensuring consistency in tax liabilities for employers.