https://www.taxtmi.com/caselaws?id=174532 Bonus or commission paid to an employee, even if contractually enforceable, is treated as a special deduction issue under clause (x) of section 10(2) of the Income-tax Act, 1922 rather than the general business-expenditure provision in clause (xv). The reasonableness of such payment must be assessed by a combined consideration of the employee's pay and service conditions, the business profits, and the general practice in similar businesses; a fragmented reliance on only one factor is legally incorrect. The Tribunal's partial approach was therefore held to be a misdirection in law, and the matter required reconsideration on the correct statutory test. en-us Fri, 28 Aug 1953 00:00:00 +0530 Fri, 09 Oct 2015 16:13:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174532 Bonus or commission paid to an employee, even if contractually enforceable, is treated as a special deduction issue under clause (x) of section 10(2) of the Income-tax Act, 1922 rather than the general business-expenditure provision in clause (xv). The reasonableness of such payment must be assessed by a combined consideration of the employee's pay and service conditions, the business profits, and the general practice in similar businesses; a fragmented reliance on only one factor is legally incorrect. The Tribunal's partial approach was therefore held to be a misdirection in law, and the matter required reconsideration on the correct statutory test. Case-Laws Income Tax Fri, 28 Aug 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174532