https://www.taxtmi.com/caselaws?id=71439 Bonus paid to employees outside the Payment of Bonus Act cannot be rejected by mechanically applying the first proviso to section 36(1)(ii) of the Income-tax Act. The payment must be examined separately for employees covered by the Bonus Act and for those whose salary exceeds the statutory ceiling and are outside its scope; for the latter group, deductibility falls to be tested under the second proviso on its own merits, and in appropriate cases as business expenditure. On that basis, the revisional order under section 263 was held unsustainable because it proceeded on the incorrect premise that the entire bonus amount was disallowable. en-us Tue, 17 Dec 1991 00:00:00 +0530 Sat, 23 Apr 2011 14:37:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71439 Bonus paid to employees outside the Payment of Bonus Act cannot be rejected by mechanically applying the first proviso to section 36(1)(ii) of the Income-tax Act. The payment must be examined separately for employees covered by the Bonus Act and for those whose salary exceeds the statutory ceiling and are outside its scope; for the latter group, deductibility falls to be tested under the second proviso on its own merits, and in appropriate cases as business expenditure. On that basis, the revisional order under section 263 was held unsustainable because it proceeded on the incorrect premise that the entire bonus amount was disallowable. Case-Laws Income Tax Tue, 17 Dec 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71439