https://www.taxtmi.com/caselaws?id=70073 A settlement-linked payment made to employees over and above the statutory bonus limit was treated as an incentive wage and ex gratia outlay, not as disguised bonus. Because the additional payment was separately understood from statutory bonus, made to encourage production and co-operation, and formed part of a commercial settlement to preserve industrial peace, it was regarded as business expenditure. The amount was therefore deductible under section 37(1) and not disallowable as bonus under section 36(1)(ii). en-us Fri, 19 Mar 1982 00:00:00 +0530 Thu, 14 Apr 2011 11:22:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70073 A settlement-linked payment made to employees over and above the statutory bonus limit was treated as an incentive wage and ex gratia outlay, not as disguised bonus. Because the additional payment was separately understood from statutory bonus, made to encourage production and co-operation, and formed part of a commercial settlement to preserve industrial peace, it was regarded as business expenditure. The amount was therefore deductible under section 37(1) and not disallowable as bonus under section 36(1)(ii). Case-Laws Income Tax Fri, 19 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70073