https://www.taxtmi.com/caselaws?id=16710 An additional payment made to employees under a settlement was treated as distinct from statutory bonus because it was linked to better performance and smooth working of the mills, not as bonus in substance. On that basis, section 36 of the Income-tax Act, 1961 did not apply, and the expenditure was allowable under section 37 when incurred wholly and exclusively for business purposes. The Tribunal's finding of commercial expediency was accepted, and the payment was held deductible as a business expense. en-us Mon, 24 Feb 1997 00:00:00 +0530 Wed, 09 Sep 2009 16:12:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16710 An additional payment made to employees under a settlement was treated as distinct from statutory bonus because it was linked to better performance and smooth working of the mills, not as bonus in substance. On that basis, section 36 of the Income-tax Act, 1961 did not apply, and the expenditure was allowable under section 37 when incurred wholly and exclusively for business purposes. The Tribunal's finding of commercial expediency was accepted, and the payment was held deductible as a business expense. Case-Laws Income Tax Mon, 24 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16710