https://www.taxtmi.com/caselaws?id=62610 Ex-gratia payments to workers of a sugar mill were treated as customary bonus or business expenditure when made under board resolutions and labour settlements, rather than as statutory profit bonus confined by the Payment of Bonus Act, 1965 or section 36(1)(ii) of the Income-tax Act, 1961. The analysis distinguishes customary or traditional bonus from profit-linked bonus and states that the statutory scheme does not extinguish other forms of bonus. It also notes that the liability arose when the resolution or agreement fixing payment was made, and that the expenditure was incurred to preserve industrial peace and labour co-operation, making the deduction allowable. en-us Thu, 08 Feb 1996 00:00:00 +0530 Thu, 20 Jan 2011 17:17:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62610 Ex-gratia payments to workers of a sugar mill were treated as customary bonus or business expenditure when made under board resolutions and labour settlements, rather than as statutory profit bonus confined by the Payment of Bonus Act, 1965 or section 36(1)(ii) of the Income-tax Act, 1961. The analysis distinguishes customary or traditional bonus from profit-linked bonus and states that the statutory scheme does not extinguish other forms of bonus. It also notes that the liability arose when the resolution or agreement fixing payment was made, and that the expenditure was incurred to preserve industrial peace and labour co-operation, making the deduction allowable. Case-Laws Income Tax Thu, 08 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62610