https://www.taxtmi.com/caselaws?id=70580 Bonus credited to employees' ledger accounts at year-end was treated as an accrued liability, not a contingent provision, because the credit created an enforceable obligation to pay and the assessee followed the mercantile system. In the factual setting, the amounts were regarded as deferred wages rather than a mere bonus reserve, supported by the genuineness of the claim and subsequent payment. The deduction was therefore allowable in the relevant accounting year and the disallowance was not sustainable. en-us Fri, 11 Dec 1981 00:00:00 +0530 Mon, 18 Apr 2011 10:41:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70580 Bonus credited to employees' ledger accounts at year-end was treated as an accrued liability, not a contingent provision, because the credit created an enforceable obligation to pay and the assessee followed the mercantile system. In the factual setting, the amounts were regarded as deferred wages rather than a mere bonus reserve, supported by the genuineness of the claim and subsequent payment. The deduction was therefore allowable in the relevant accounting year and the disallowance was not sustainable. Case-Laws Income Tax Fri, 11 Dec 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70580