https://www.taxtmi.com/caselaws?id=21683 The High Court held that bonus payments made under a bipartite agreement, even if exceeding the minimum under the Payment of Bonus Act, were deductible as a business expense under section 37(1) of the Income-tax Act, 1961. The Court found the payment necessary for maintaining industrial peace and for business continuity, emphasizing the commercial expediency behind such payments. The judgment highlighted the importance of considering business context and necessity in determining the deductibility of expenses under the Income-tax Act, 1961. en-us Mon, 24 Jun 1991 00:00:00 +0530 Thu, 26 Nov 2009 17:04:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21683 The High Court held that bonus payments made under a bipartite agreement, even if exceeding the minimum under the Payment of Bonus Act, were deductible as a business expense under section 37(1) of the Income-tax Act, 1961. The Court found the payment necessary for maintaining industrial peace and for business continuity, emphasizing the commercial expediency behind such payments. The judgment highlighted the importance of considering business context and necessity in determining the deductibility of expenses under the Income-tax Act, 1961. Case-Laws Income Tax Mon, 24 Jun 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21683