https://www.taxtmi.com/caselaws?id=16008 Bonus paid under a government-approved settlement was treated as deductible under the Income-tax Act according to its true statutory character, and the tax authority could not deny the deduction by re-examining allocable surplus where the payment fell within the bonus law framework. Amounts paid to workmen under a binding labour settlement, including customary bonus and agreed adjustments, were also treated as revenue expenditure incurred wholly for business purposes to maintain industrial peace, and were allowable as business deduction. The commentary states that such labour-related payments are deductible when made under a valid settlement and within the permissible statutory framework. en-us Thu, 19 Mar 1998 00:00:00 +0530 Mon, 31 Aug 2009 14:50:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16008 Bonus paid under a government-approved settlement was treated as deductible under the Income-tax Act according to its true statutory character, and the tax authority could not deny the deduction by re-examining allocable surplus where the payment fell within the bonus law framework. Amounts paid to workmen under a binding labour settlement, including customary bonus and agreed adjustments, were also treated as revenue expenditure incurred wholly for business purposes to maintain industrial peace, and were allowable as business deduction. The commentary states that such labour-related payments are deductible when made under a valid settlement and within the permissible statutory framework. Case-Laws Income Tax Thu, 19 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16008