https://www.taxtmi.com/caselaws?id=15329 A binding settlement payment described as bonus was treated as additional wages paid for business considerations, namely employee cooperation, smooth working and higher productivity; the commentary states that its true character, not the label used, determines deductibility, and that such payment is allowable as business expenditure under section 37 rather than being barred by the proviso to section 36(1)(ii). It also explains that extra-shift allowance on machinery additions must be computed on the judicially settled basis, with reference to the days workers actually worked double or triple shift, and not by a restrictive machinery-specific approach. en-us Thu, 19 Feb 1998 00:00:00 +0530 Tue, 04 Aug 2009 17:39:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15329 A binding settlement payment described as bonus was treated as additional wages paid for business considerations, namely employee cooperation, smooth working and higher productivity; the commentary states that its true character, not the label used, determines deductibility, and that such payment is allowable as business expenditure under section 37 rather than being barred by the proviso to section 36(1)(ii). It also explains that extra-shift allowance on machinery additions must be computed on the judicially settled basis, with reference to the days workers actually worked double or triple shift, and not by a restrictive machinery-specific approach. Case-Laws Income Tax Thu, 19 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15329