https://www.taxtmi.com/caselaws?id=27227 Under section 15 of the Payment of Bonus Act, an amount carried forward as "set on" is kept by the assessee for up to four succeeding accounting years to cover possible later shortfalls. Because the amount is not paid to a third party, not placed beyond the assessee's control, and not diverted by an overriding legal obligation, it is neither expenditure actually incurred nor a liability that has accrued. It is only a compulsory provision for a future contingency and, on that basis, is not a deductible loss, expenditure, or trading liability under the Income-tax Act. en-us Tue, 19 Jun 1984 00:00:00 +0530 Thu, 11 Feb 2010 16:00:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27227 Under section 15 of the Payment of Bonus Act, an amount carried forward as "set on" is kept by the assessee for up to four succeeding accounting years to cover possible later shortfalls. Because the amount is not paid to a third party, not placed beyond the assessee's control, and not diverted by an overriding legal obligation, it is neither expenditure actually incurred nor a liability that has accrued. It is only a compulsory provision for a future contingency and, on that basis, is not a deductible loss, expenditure, or trading liability under the Income-tax Act. Case-Laws Income Tax Tue, 19 Jun 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27227