https://www.taxtmi.com/caselaws?id=6216 An amount credited to the profit and loss account as unpaid bonus was not taxable under section 10(2A) of the Indian Income-tax Act, 1922 because the foundational condition of a prior allowance or deduction in respect of that trading liability was not proved. The provision applies only where an earlier assessment has allowed a deduction for a loss, expenditure, or trading liability, and the assessee later receives a remission or cessation benefit. On the record, there was no showing that the bonus liability had been specifically allowed as a deduction in the earlier year, so the statutory test failed. The referred question was answered in the negative, in favour of the assessee. en-us Tue, 11 Aug 1970 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6216 An amount credited to the profit and loss account as unpaid bonus was not taxable under section 10(2A) of the Indian Income-tax Act, 1922 because the foundational condition of a prior allowance or deduction in respect of that trading liability was not proved. The provision applies only where an earlier assessment has allowed a deduction for a loss, expenditure, or trading liability, and the assessee later receives a remission or cessation benefit. On the record, there was no showing that the bonus liability had been specifically allowed as a deduction in the earlier year, so the statutory test failed. The referred question was answered in the negative, in favour of the assessee. Case-Laws Income Tax Tue, 11 Aug 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6216