https://www.taxtmi.com/caselaws?id=289001 A bonus liability that accrued only after the transfer of the business, and became legally enforceable under an industrial award and settlement, was treated as revenue expenditure rather than capital outlay. Because the payment was incurred in the course of carrying on the business to secure industrial peace and continuity of operations, it satisfied the test of being laid out wholly and exclusively for business purposes. The liability was deductible in the year in which it actually accrued, and any amount already included in that computation was to be excluded from the later year's assessment. en-us Thu, 02 Feb 1961 00:00:00 +0530 Thu, 09 Jul 2020 14:06:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289001 A bonus liability that accrued only after the transfer of the business, and became legally enforceable under an industrial award and settlement, was treated as revenue expenditure rather than capital outlay. Because the payment was incurred in the course of carrying on the business to secure industrial peace and continuity of operations, it satisfied the test of being laid out wholly and exclusively for business purposes. The liability was deductible in the year in which it actually accrued, and any amount already included in that computation was to be excluded from the later year's assessment. Case-Laws Income Tax Thu, 02 Feb 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289001