https://www.taxtmi.com/caselaws?id=168614 Direct commission, handling charges and regional office expenses were not liable to be added back in gross profit computation under the Payment of Bonus Act because the commission was already reflected in the accounts, the handling charges were embedded in the invoice cost, and the regional office expenses were properly allocable branch expenses. Interest charged by head office on intra-company advances was not deductible, as a company cannot be creditor and debtor to itself and the amount was an internal transfer, so it had to be added back. Provisions for gratuity and other contingencies were treated as provisions for accrued liabilities, not reserves, and were therefore not added back. Income-tax for bonus purposes was computed without first deducting bonus payable, and that approach was upheld. en-us Wed, 28 Apr 1971 00:00:00 +0530 Tue, 17 Mar 2015 14:19:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168614 Direct commission, handling charges and regional office expenses were not liable to be added back in gross profit computation under the Payment of Bonus Act because the commission was already reflected in the accounts, the handling charges were embedded in the invoice cost, and the regional office expenses were properly allocable branch expenses. Interest charged by head office on intra-company advances was not deductible, as a company cannot be creditor and debtor to itself and the amount was an internal transfer, so it had to be added back. Provisions for gratuity and other contingencies were treated as provisions for accrued liabilities, not reserves, and were therefore not added back. Income-tax for bonus purposes was computed without first deducting bonus payable, and that approach was upheld. Case-Laws Indian Laws Wed, 28 Apr 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168614