https://www.taxtmi.com/caselaws?id=288999 Direct tax under the Payment of Bonus Act is computed as a prior charge on gross-profits and prior charges without first deducting bonus payable for the same accounting year, so the Tribunal's contrary computation of allocable surplus was incorrect. Amounts already earmarked from reserves for dividend cannot remain part of reserves for return calculations, and doubtful debts treated as a provision, together with patent fees, plant transfer charges and disallowable rent treated as capital items, were correctly added back in gross-profit computation. On that basis, the award of 20% bonus and the direction of set on could not stand. en-us Thu, 09 Dec 1971 00:00:00 +0530 Thu, 09 Jul 2020 12:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288999 Direct tax under the Payment of Bonus Act is computed as a prior charge on gross-profits and prior charges without first deducting bonus payable for the same accounting year, so the Tribunal's contrary computation of allocable surplus was incorrect. Amounts already earmarked from reserves for dividend cannot remain part of reserves for return calculations, and doubtful debts treated as a provision, together with patent fees, plant transfer charges and disallowable rent treated as capital items, were correctly added back in gross-profit computation. On that basis, the award of 20% bonus and the direction of set on could not stand. Case-Laws Indian Laws Thu, 09 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288999