https://www.taxtmi.com/caselaws?id=17581 Customary bonus paid consistently to workmen, and aligned with remuneration practice in the business, was treated as part of the salary structure rather than as profit-linked bonus. The Court held that customary bonus falls outside the profit-bonus concept under the Payment of Bonus Act and that the second proviso to section 36(1)(ii) permits deduction where the surrounding conditions, including pay, service conditions, profits and general trade practice, are satisfied. On the facts, the assessee's payment pattern and industry practice supported allowance of the deduction, so the disallowance was unwarranted. en-us Tue, 02 Jul 1996 00:00:00 +0530 Wed, 23 Sep 2009 14:58:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17581 Customary bonus paid consistently to workmen, and aligned with remuneration practice in the business, was treated as part of the salary structure rather than as profit-linked bonus. The Court held that customary bonus falls outside the profit-bonus concept under the Payment of Bonus Act and that the second proviso to section 36(1)(ii) permits deduction where the surrounding conditions, including pay, service conditions, profits and general trade practice, are satisfied. On the facts, the assessee's payment pattern and industry practice supported allowance of the deduction, so the disallowance was unwarranted. Case-Laws Income Tax Tue, 02 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17581