https://www.taxtmi.com/caselaws?id=6810 Under the mercantile system, a bonus payment is deductible only when the liability becomes ascertained in the relevant accounting year. A bonus liability determined later by industrial adjudication cannot be carried back to reopen the earlier year's accounts or claimed as a deduction in that prior assessment year. Applying this principle, the court held that the disputed bonus amount was not deductible in the assessment year in question and was taxable in the year in which the liability was finally settled. en-us Tue, 11 Oct 1966 00:00:00 +0530 Mon, 02 Feb 2009 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6810 Under the mercantile system, a bonus payment is deductible only when the liability becomes ascertained in the relevant accounting year. A bonus liability determined later by industrial adjudication cannot be carried back to reopen the earlier year's accounts or claimed as a deduction in that prior assessment year. Applying this principle, the court held that the disputed bonus amount was not deductible in the assessment year in question and was taxable in the year in which the liability was finally settled. Case-Laws Income Tax Tue, 11 Oct 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6810