https://www.taxtmi.com/caselaws?id=9853 The High Court of Gujarat ruled in favor of the assessee, allowing the deduction of a bonus payment for earlier years under section 256(1) of the Income-tax Act, 1961. The Court found the bonus payment to be deductible for the accounting year in question, considering the historical payment practices and the change in the accounting system from cash to mercantile. Emphasizing the regularity of bonus payments following the end of accounting periods, the Court upheld the Tribunal's decision and disposed of the reference in favor of the assessee, with no order as to costs. en-us Thu, 01 Dec 2005 00:00:00 +0530 Thu, 02 Jul 2009 10:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9853 The High Court of Gujarat ruled in favor of the assessee, allowing the deduction of a bonus payment for earlier years under section 256(1) of the Income-tax Act, 1961. The Court found the bonus payment to be deductible for the accounting year in question, considering the historical payment practices and the change in the accounting system from cash to mercantile. Emphasizing the regularity of bonus payments following the end of accounting periods, the Court upheld the Tribunal's decision and disposed of the reference in favor of the assessee, with no order as to costs. Case-Laws Income Tax Thu, 01 Dec 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9853