https://www.taxtmi.com/caselaws?id=276588 A genuine, contractually binding service fee paid under a technical aid agreement could not be disallowed in bonus computation merely because the tribunal questioned its commercial necessity; absent evidence that the payment was sham or intended to suppress profits, the expenditure had to be treated as a permissible business outlay. The settled bonus formula also required recognised prior charges to be deducted before ascertaining available surplus, so treating bonus itself as a prior charge was an impermissible departure from the formula. The award was modified accordingly, the service fee was restored, and bonus was recalculated on that basis. en-us Wed, 06 May 1959 00:00:00 +0530 Wed, 14 Nov 2018 12:20:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276588 A genuine, contractually binding service fee paid under a technical aid agreement could not be disallowed in bonus computation merely because the tribunal questioned its commercial necessity; absent evidence that the payment was sham or intended to suppress profits, the expenditure had to be treated as a permissible business outlay. The settled bonus formula also required recognised prior charges to be deducted before ascertaining available surplus, so treating bonus itself as a prior charge was an impermissible departure from the formula. The award was modified accordingly, the service fee was restored, and bonus was recalculated on that basis. Case-Laws Indian Laws Wed, 06 May 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276588