https://www.taxtmi.com/caselaws?id=190192 Under the mercantile system, a bonus liability created by an industrial award is an accrued and legally enforceable obligation from the date the award is published, even if statutory enforceability is delayed; it was therefore deductible in the relevant accounting year. By contrast, a voluntary provision for bonus for a later year, made without any award, agreement, or enforceable claim, was only contingent and not deductible. The court thus distinguished between accrued liability and a mere estimate, allowing the deduction for the award-based bonus and disallowing the voluntary provision. en-us Fri, 17 Nov 1961 00:00:00 +0530 Wed, 08 Feb 2017 17:54:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190192 Under the mercantile system, a bonus liability created by an industrial award is an accrued and legally enforceable obligation from the date the award is published, even if statutory enforceability is delayed; it was therefore deductible in the relevant accounting year. By contrast, a voluntary provision for bonus for a later year, made without any award, agreement, or enforceable claim, was only contingent and not deductible. The court thus distinguished between accrued liability and a mere estimate, allowing the deduction for the award-based bonus and disallowing the voluntary provision. Case-Laws Income Tax Fri, 17 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190192