( 1 ) THE question referred for our opinion, is :"whether, on the facts and in the circumstances of the case, the disallowance of the sum of Rs. 2,03,173 out of the provision made for bonus in the balance-sheet for the assessment year 1972-73 was in order ?"

( 2 ) THE assessee is a public limited company running a spinning mill. Its accounting year is the financial year. For the year ending 31/03/1974, the assessee made a provision of Rs. 10,02,180 towards bonus under the Payment of Bonus Act, 1965, which amount represents the allocable surplus calculated under the provisions of the said Act. The maximum bonus payable for the said accounting year came to Rs. 7,98,007, thus leaving a balance of Rs. 2,03,177. This amount was "set on", i. e. , carried forward, as contemplated by s. 15 of the said Act. The assessee claimed deduction even for this amount of Rs. 2,03,177 in the computation of its taxable income, which was rejected by the ITO. An appeal to the AAC proved fruitless. The assessee then preferred a second appeal to the Tribunal. Before the Tribunal, it was contended by the assessee that the allocable surplus set apart by it in the balance-sheet was in discharg