https://www.taxtmi.com/caselaws?id=114569 Bonus paid to shareholder-employees was treated as deductible under section 10(2)(x) of the Indian Income-tax Act, 1922 because the provision applies to bonus or commission paid for services rendered, and its exception depends on whether the sum would otherwise have been payable as profits or dividend. The court construed the allowance strictly in favour of the taxpayer and focused on whether the actual bonus represented an amount that would have reached the employees as profit or dividend absent the bonus payment. As the bonus was linked to salary and not shareholding, the deduction was allowed. en-us Tue, 05 Mar 1946 00:00:00 +0530 Thu, 17 May 2012 12:12:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114569 Bonus paid to shareholder-employees was treated as deductible under section 10(2)(x) of the Indian Income-tax Act, 1922 because the provision applies to bonus or commission paid for services rendered, and its exception depends on whether the sum would otherwise have been payable as profits or dividend. The court construed the allowance strictly in favour of the taxpayer and focused on whether the actual bonus represented an amount that would have reached the employees as profit or dividend absent the bonus payment. As the bonus was linked to salary and not shareholding, the deduction was allowed. Case-Laws Income Tax Tue, 05 Mar 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114569