https://www.taxtmi.com/caselaws?id=62875 Bonus paid at 20% of wages was treated as deductible under section 36(1)(ii) where it was made under a bona fide settlement with employees and its genuineness and reasonableness were not disputed. The Payment of Bonus Act, 1965 was read as permitting bonus up to the statutory ceiling, and the word "payable" in the first proviso was construed as "permitted to pay" rather than "legally obliged to pay". On that interpretation, the excess over 8.33% remained within the allowable limit; alternatively, the payment also met the second proviso because it arose from an agreed settlement. en-us Wed, 20 Mar 1991 00:00:00 +0530 Sat, 22 Jan 2011 13:12:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62875 Bonus paid at 20% of wages was treated as deductible under section 36(1)(ii) where it was made under a bona fide settlement with employees and its genuineness and reasonableness were not disputed. The Payment of Bonus Act, 1965 was read as permitting bonus up to the statutory ceiling, and the word "payable" in the first proviso was construed as "permitted to pay" rather than "legally obliged to pay". On that interpretation, the excess over 8.33% remained within the allowable limit; alternatively, the payment also met the second proviso because it arose from an agreed settlement. Case-Laws Income Tax Wed, 20 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62875