High Court rules in favor of assessee on revenue expenditure & bonus payments

The High Court of Andhra Pradesh ruled in favor of the assessee in a tax case involving deduction of revenue expenditure and disallowance of bonus payments to employees. The court held that the expenditure in question is revenue expenditure and that no part of the bonus paid in cash to employees could be disallowed under the Income-tax Act, 1961.

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The High Court of Andhra Pradesh ruled in favor of the assessee in a tax case involving deduction of revenue expenditure and disallowance of bonus payments to employees. The court held that the expenditure in question is revenue expenditure and that no part of the bonus paid in cash to employees could be disallowed under the Income-tax Act, 1961. The judgment was delivered by Judge Anjaneyulu.

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