https://www.taxtmi.com/caselaws?id=10456 Bonus paid to senior staff not entitled to bonus under the Payment of Bonus Act was examined for deduction under section 36(1)(ii) of the Income-tax Act. The payment is allowable only if its reasonableness is established on relevant factual factors, including employee service conditions, settled practice, and commercial expediency. A mere absence of business profit does not by itself make the payment reasonable or deductible. On the stated facts, the bonus payment was treated as not admissible as expenditure, because there was no finding supporting commercial expediency or a consistent practice of such payment. en-us Mon, 14 Feb 2005 00:00:00 +0530 Thu, 16 Jul 2009 10:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10456 Bonus paid to senior staff not entitled to bonus under the Payment of Bonus Act was examined for deduction under section 36(1)(ii) of the Income-tax Act. The payment is allowable only if its reasonableness is established on relevant factual factors, including employee service conditions, settled practice, and commercial expediency. A mere absence of business profit does not by itself make the payment reasonable or deductible. On the stated facts, the bonus payment was treated as not admissible as expenditure, because there was no finding supporting commercial expediency or a consistent practice of such payment. Case-Laws Income Tax Mon, 14 Feb 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10456