https://www.taxtmi.com/caselaws?id=70092 The Appellate Tribunal ITAT MADRAS-C allowed the appeals of a co-operative society operating a spinning mill for the assessment years 1978-79 and 1979-80. The Tribunal held that the additional payment made beyond the statutory bonus percentage was not bonus but ex gratia payment, exempt from the statutory bonus ceiling. As the payment was for commercial expediency to promote business and earn profits, it was considered an allowable deduction under section 37(1) of the Income-tax Act. The judgment emphasized the distinction between bonus and ex gratia payment, permitting the additional payment as a deductible expense. en-us Mon, 15 Oct 1984 00:00:00 +0530 Thu, 14 Apr 2011 12:37:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70092 The Appellate Tribunal ITAT MADRAS-C allowed the appeals of a co-operative society operating a spinning mill for the assessment years 1978-79 and 1979-80. The Tribunal held that the additional payment made beyond the statutory bonus percentage was not bonus but ex gratia payment, exempt from the statutory bonus ceiling. As the payment was for commercial expediency to promote business and earn profits, it was considered an allowable deduction under section 37(1) of the Income-tax Act. The judgment emphasized the distinction between bonus and ex gratia payment, permitting the additional payment as a deductible expense. Case-Laws Income Tax Mon, 15 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70092