https://www.taxtmi.com/caselaws?id=70630 A payment described as statutory bonus under a conciliation settlement was treated as deductible within the first proviso to section 36(1)(ii) because it fell within the prescribed bonus framework. A separate incentive bonus linked to higher production and continued worker co-operation was held to be business expenditure allowable under section 37(1) as an outlay incurred wholly and exclusively for business purposes. The additional forest lease demand was treated as an accrued liability under the mercantile system because the obligation arose when the raw material was supplied and the undertaking was executed, with later quantification not making it contingent. Absence of book entries did not affect deductibility. en-us Wed, 13 Jan 1988 00:00:00 +0530 Mon, 18 Apr 2011 11:56:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70630 A payment described as statutory bonus under a conciliation settlement was treated as deductible within the first proviso to section 36(1)(ii) because it fell within the prescribed bonus framework. A separate incentive bonus linked to higher production and continued worker co-operation was held to be business expenditure allowable under section 37(1) as an outlay incurred wholly and exclusively for business purposes. The additional forest lease demand was treated as an accrued liability under the mercantile system because the obligation arose when the raw material was supplied and the undertaking was executed, with later quantification not making it contingent. Absence of book entries did not affect deductibility. Case-Laws Income Tax Wed, 13 Jan 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70630