https://www.taxtmi.com/caselaws?id=5024 In computing taxable profits of an insurer other than a life insurer, the annual accounts under the Insurance Act, including the appropriation account, form the basis of assessment subject to Income-tax Act adjustments. A bonus payable to renewing policyholders under a mercantile bonus scheme was deductible because the liability crystallised on renewal, was properly reflected in the accounts, and was incurred wholly and exclusively for the business. It was not disallowed merely because it appeared in the appropriation account rather than the profit and loss account, and it was not treated as a mere appropriation of profits or a contingent liability. en-us Thu, 23 Mar 1967 00:00:00 +0530 Tue, 18 Nov 2008 16:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5024 In computing taxable profits of an insurer other than a life insurer, the annual accounts under the Insurance Act, including the appropriation account, form the basis of assessment subject to Income-tax Act adjustments. A bonus payable to renewing policyholders under a mercantile bonus scheme was deductible because the liability crystallised on renewal, was properly reflected in the accounts, and was incurred wholly and exclusively for the business. It was not disallowed merely because it appeared in the appropriation account rather than the profit and loss account, and it was not treated as a mere appropriation of profits or a contingent liability. Case-Laws Income Tax Thu, 23 Mar 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5024