https://www.taxtmi.com/caselaws?id=69375 Additional employee payments made under a binding labour settlement were treated as business expenditure, and the deduction was allowable under section 37 because the liability arose from statutory compulsion and business necessity rather than bonus within the Payment of Bonus Act. The assessee was also permitted to adopt a bona fide change from claiming bonus on payment basis to claiming accrued liability on a mercantile basis under section 145(1), so the provision for bonus in the year of change was deductible. Both claims were accepted, and the revenue appeal failed, with consequential adjustment to the surtax assessment. en-us Fri, 31 Aug 1984 00:00:00 +0530 Wed, 06 Apr 2011 14:29:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69375 Additional employee payments made under a binding labour settlement were treated as business expenditure, and the deduction was allowable under section 37 because the liability arose from statutory compulsion and business necessity rather than bonus within the Payment of Bonus Act. The assessee was also permitted to adopt a bona fide change from claiming bonus on payment basis to claiming accrued liability on a mercantile basis under section 145(1), so the provision for bonus in the year of change was deductible. Both claims were accepted, and the revenue appeal failed, with consequential adjustment to the surtax assessment. Case-Laws Income Tax Fri, 31 Aug 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69375