https://www.taxtmi.com/caselaws?id=22896 Ex gratia payments exceeding the statutory bonus limit require examination under section 36(1)(ii) based on their reasonableness in light of employee pay and service conditions, relevant-year profits, and comparable business practice; contractual description or customary character is not decisive. The Tribunal's deletion of disallowance required reconsideration on those parameters. Production incentive cannot be treated as additional wages without examining the governing agreement and supporting material, including the potential application of section 31A of the Payment of Bonus Act. Its character and deductibility require fresh examination under the applicable statutory provisions. en-us Sat, 18 Aug 1990 00:00:00 +0530 Tue, 15 Dec 2009 12:11:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22896 Ex gratia payments exceeding the statutory bonus limit require examination under section 36(1)(ii) based on their reasonableness in light of employee pay and service conditions, relevant-year profits, and comparable business practice; contractual description or customary character is not decisive. The Tribunal's deletion of disallowance required reconsideration on those parameters. Production incentive cannot be treated as additional wages without examining the governing agreement and supporting material, including the potential application of section 31A of the Payment of Bonus Act. Its character and deductibility require fresh examination under the applicable statutory provisions. Case-Laws Income Tax Sat, 18 Aug 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22896