https://www.taxtmi.com/caselaws?id=21822 The High Court ruled in favor of the assessee, determining that the incentive bonus paid to employees was an admissible deduction in computing taxable income. The court found that the bonus scheme was designed to motivate individual employees to increase production and was not linked to annual profits or company productivity. The court emphasized that the bonus was structured as an incentive wage, distinct from traditional profit-sharing bonuses covered by the Payment of Bonus Act, 1965. Consequently, the court upheld the deductibility of the incentive bonus in the assessment years under consideration. en-us Fri, 15 Feb 1991 00:00:00 +0530 Sun, 08 May 2011 14:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21822 The High Court ruled in favor of the assessee, determining that the incentive bonus paid to employees was an admissible deduction in computing taxable income. The court found that the bonus scheme was designed to motivate individual employees to increase production and was not linked to annual profits or company productivity. The court emphasized that the bonus was structured as an incentive wage, distinct from traditional profit-sharing bonuses covered by the Payment of Bonus Act, 1965. Consequently, the court upheld the deductibility of the incentive bonus in the assessment years under consideration. Case-Laws Income Tax Fri, 15 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21822