https://www.taxtmi.com/caselaws?id=8597 Disallowance of part of the bonus paid to employees under section 10(2)(x) of the Income-tax Act, 1922 was held unjustified where the payment was genuine and the statutory test of reasonableness had to be assessed by reference to employee pay and service conditions, the year's profits, and the general practice in similar businesses. The taxing authorities could not reduce the allowable bonus merely because profits were lower than in earlier years or because the bonus did not move proportionately with profits. In the absence of any evidentiary basis or relevant standards supporting a lower allowance, the reduction was not sustainable and the issue was answered in favour of the assessee. en-us Fri, 11 Feb 1972 00:00:00 +0530 Tue, 05 May 2009 17:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8597 Disallowance of part of the bonus paid to employees under section 10(2)(x) of the Income-tax Act, 1922 was held unjustified where the payment was genuine and the statutory test of reasonableness had to be assessed by reference to employee pay and service conditions, the year's profits, and the general practice in similar businesses. The taxing authorities could not reduce the allowable bonus merely because profits were lower than in earlier years or because the bonus did not move proportionately with profits. In the absence of any evidentiary basis or relevant standards supporting a lower allowance, the reduction was not sustainable and the issue was answered in favour of the assessee. Case-Laws Income Tax Fri, 11 Feb 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8597