https://www.taxtmi.com/caselaws?id=70092 An additional payment to workmen over and above 8.33 per cent bonus was treated as ex gratia expenditure, not statutory bonus, because it was made under a settlement to secure labour co-operation and smooth working of the mills. The payment was not linked to profits and was incurred on grounds of commercial expediency for the purpose of the business. On that basis, the expenditure was held to be deductible as business expenditure under section 37(1), and the bonus ceiling under the proviso to section 36(1)(ii) was not attracted. 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 An additional payment to workmen over and above 8.33 per cent bonus was treated as ex gratia expenditure, not statutory bonus, because it was made under a settlement to secure labour co-operation and smooth working of the mills. The payment was not linked to profits and was incurred on grounds of commercial expediency for the purpose of the business. On that basis, the expenditure was held to be deductible as business expenditure under section 37(1), and the bonus ceiling under the proviso to section 36(1)(ii) was not attracted. Case-Laws Income Tax Mon, 15 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70092