https://www.taxtmi.com/caselaws?id=15636 An additional payment made under a binding settlement under the Industrial Disputes Act was treated as deductible business expenditure under section 37 of the Income-tax Act, 1961, because it was incurred for commercial expediency to secure industrial peace and productivity. The payment was not confined to bonus under the Payment of Bonus Act, 1965, and therefore did not fall within the restricted bonus category under section 36(1)(ii). As an enforceable commercial obligation undertaken in the course of business, the settlement-linked payment was allowable as a deduction, and the assessee's claim was sustained. en-us Thu, 04 Dec 1997 00:00:00 +0530 Wed, 26 Aug 2009 15:38:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15636 An additional payment made under a binding settlement under the Industrial Disputes Act was treated as deductible business expenditure under section 37 of the Income-tax Act, 1961, because it was incurred for commercial expediency to secure industrial peace and productivity. The payment was not confined to bonus under the Payment of Bonus Act, 1965, and therefore did not fall within the restricted bonus category under section 36(1)(ii). As an enforceable commercial obligation undertaken in the course of business, the settlement-linked payment was allowable as a deduction, and the assessee's claim was sustained. Case-Laws Income Tax Thu, 04 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15636