https://www.taxtmi.com/caselaws?id=76936 Ex-gratia payment to employees above the statutory bonus ceiling under the Payment of Bonus Act can qualify as deductible business expenditure under the Income-tax Act where it is a reasonable outlay incurred wholly and exclusively for business, including to maintain industrial peace. The proviso to section 36(1)(ii) was read as not limiting deduction only to statutory bonus, and section 37(1) was also recognised as supporting deductibility of non-statutory employee payments made for business purposes. The ex-gratia payment was therefore treated as allowable, and the assessee's claim was upheld. en-us Fri, 22 Aug 2008 00:00:00 +0530 Fri, 30 Jul 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76936 Ex-gratia payment to employees above the statutory bonus ceiling under the Payment of Bonus Act can qualify as deductible business expenditure under the Income-tax Act where it is a reasonable outlay incurred wholly and exclusively for business, including to maintain industrial peace. The proviso to section 36(1)(ii) was read as not limiting deduction only to statutory bonus, and section 37(1) was also recognised as supporting deductibility of non-statutory employee payments made for business purposes. The ex-gratia payment was therefore treated as allowable, and the assessee's claim was upheld. Case-Laws Income Tax Fri, 22 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76936