https://www.taxtmi.com/caselaws?id=65062 The Tribunal upheld the allowance of the production incentive as additional wages under section 36(1)(ii) of the Income-tax Act, 1961, for the assessment year 1981-82. It determined that the incentive, linked to production targets, was more akin to additional wages than bonus, as clarified by a Supreme Court judgment. The Tribunal dismissed the revenue's appeal, emphasizing that the incentive was not bonus but a form of additional wages for extra production effort, in line with the Payment of Bonus Act. Additionally, it held that the payment could still be considered under section 37 despite being disallowed under section 36(1)(ii), following a Delhi High Court judgment. en-us Mon, 23 Feb 1987 00:00:00 +0530 Sat, 12 Feb 2011 11:04:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65062 The Tribunal upheld the allowance of the production incentive as additional wages under section 36(1)(ii) of the Income-tax Act, 1961, for the assessment year 1981-82. It determined that the incentive, linked to production targets, was more akin to additional wages than bonus, as clarified by a Supreme Court judgment. The Tribunal dismissed the revenue's appeal, emphasizing that the incentive was not bonus but a form of additional wages for extra production effort, in line with the Payment of Bonus Act. Additionally, it held that the payment could still be considered under section 37 despite being disallowed under section 36(1)(ii), following a Delhi High Court judgment. Case-Laws Income Tax Mon, 23 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65062