https://www.taxtmi.com/caselaws?id=117821 Under the mercantile system, a bonus provision is deductible only if it reflects a real, enforceable and ascertained liability. A unilateral shift from actual payment to accrual basis is ineffective unless it is a bona fide and consistently applied change in the regular method of accounting. Where there is no proof of a workers' claim, settlement, or industrial adjudication fixing the obligation, the provision remains contingent and unascertained and is not allowable as expenditure for income-tax purposes. en-us Tue, 20 Jul 1965 00:00:00 +0530 Tue, 31 Jul 2012 23:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117821 Under the mercantile system, a bonus provision is deductible only if it reflects a real, enforceable and ascertained liability. A unilateral shift from actual payment to accrual basis is ineffective unless it is a bona fide and consistently applied change in the regular method of accounting. Where there is no proof of a workers' claim, settlement, or industrial adjudication fixing the obligation, the provision remains contingent and unascertained and is not allowable as expenditure for income-tax purposes. Case-Laws Income Tax Tue, 20 Jul 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117821