https://www.taxtmi.com/caselaws?id=18453 Bonus paid to employees is deductible under section 36(1)(ii) only within the statutory ceiling linked to the Payment of Bonus Act, 1965. Where no allocable surplus is shown, the allowable bonus is limited to the minimum statutory rate, and a private agreement cannot expand that limit. The second proviso can justify a higher deduction only if the assessee proves, with cogent evidence, that the payment was reasonable having regard to employee remuneration, service conditions, or general practice in similar businesses. In the absence of such proof, deduction above the minimum statutory bonus is not allowable. en-us Tue, 16 Jan 1996 00:00:00 +0530 Thu, 01 Oct 2009 10:59:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18453 Bonus paid to employees is deductible under section 36(1)(ii) only within the statutory ceiling linked to the Payment of Bonus Act, 1965. Where no allocable surplus is shown, the allowable bonus is limited to the minimum statutory rate, and a private agreement cannot expand that limit. The second proviso can justify a higher deduction only if the assessee proves, with cogent evidence, that the payment was reasonable having regard to employee remuneration, service conditions, or general practice in similar businesses. In the absence of such proof, deduction above the minimum statutory bonus is not allowable. Case-Laws Income Tax Tue, 16 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18453