https://www.taxtmi.com/caselaws?id=13696 Deduction of incentive bonus under section 36(1)(ii) depends on more than proof of actual payment: the Assessing Officer must also examine whether the statutory conditions on reasonableness and applicable bonus limits are satisfied. Where employees fall under the Payment of Bonus Act, the deduction is capped by that Act; otherwise, the payment must be reasonable by reference to pay, service conditions, business profits, and comparable practice. Genuineness of payment alone is not the sole test for allowance, so the Tribunal was wrong to confine the enquiry to that factor, and the issue was decided in favour of the Revenue. en-us Wed, 16 Mar 2005 00:00:00 +0530 Wed, 01 Jul 2009 17:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13696 Deduction of incentive bonus under section 36(1)(ii) depends on more than proof of actual payment: the Assessing Officer must also examine whether the statutory conditions on reasonableness and applicable bonus limits are satisfied. Where employees fall under the Payment of Bonus Act, the deduction is capped by that Act; otherwise, the payment must be reasonable by reference to pay, service conditions, business profits, and comparable practice. Genuineness of payment alone is not the sole test for allowance, so the Tribunal was wrong to confine the enquiry to that factor, and the issue was decided in favour of the Revenue. Case-Laws Income Tax Wed, 16 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13696