https://www.taxtmi.com/caselaws?id=20791 Amounts described as production bonus and maintenance bonus were held to be incentive wages on the facts, because the agreements and settlements showed recurring month-to-month payments linked to production and maintenance rather than a substitute for profit-based bonus. As the payments were not "bonus" within section 36(1)(ii) of the Income-tax Act, 1961, the ceiling under the Payment of Bonus Act, 1965 did not apply. The payments were therefore allowable as business expenditure under section 37, being laid out wholly and exclusively for business purposes, and the Revenue's objection based on the bonus ceiling failed. en-us Mon, 08 Feb 1993 00:00:00 +0530 Tue, 17 Nov 2009 12:11:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20791 Amounts described as production bonus and maintenance bonus were held to be incentive wages on the facts, because the agreements and settlements showed recurring month-to-month payments linked to production and maintenance rather than a substitute for profit-based bonus. As the payments were not "bonus" within section 36(1)(ii) of the Income-tax Act, 1961, the ceiling under the Payment of Bonus Act, 1965 did not apply. The payments were therefore allowable as business expenditure under section 37, being laid out wholly and exclusively for business purposes, and the Revenue's objection based on the bonus ceiling failed. Case-Laws Income Tax Mon, 08 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20791