Deduction Claim on Unpaid Ad-hoc Bonus from AY 1984-85: Bombay HC Quashes ₹12L Income Tax Penalty from 2002 ITAT Order citing Plausibility

The Bombay High Court has upheld an Income Tax penalty from 2002 based on an ITAT order, citing "plausibility" for a deduction claim on "unpaid ad-hoc bonus from AY 1984-85." This complex case highlights long-standing tax disputes. The court's decision suggests that while the penalty was upheld, the underlying deduction claim for an unpaid ad-hoc bonus from a very old assessment year was considered plausible by the ITAT. This underscores the judiciary's role in scrutinizing past tax assessments and penalties based on the merits of the original claims.