https://www.taxtmi.com/caselaws?id=32938 Surtax payable under the Companies (Profits) Sur-tax Act, 1964 was treated as not deductible under Section 37 of the Income-tax Act because binding Supreme Court authority had already held it was not an admissible business deduction. The amount set apart as set-on liability under Section 15 of the Payment of Bonus Act was also held not deductible, since the statutory mechanism created only a reserve for a possible future shortfall, not an accrued liability capable of reasonable estimation. As the amount remained contingent and under the assessee's control if unused, it was not allowable as expenditure. en-us Sat, 04 Apr 2009 00:00:00 +0530 Wed, 01 Sep 2010 16:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32938 Surtax payable under the Companies (Profits) Sur-tax Act, 1964 was treated as not deductible under Section 37 of the Income-tax Act because binding Supreme Court authority had already held it was not an admissible business deduction. The amount set apart as set-on liability under Section 15 of the Payment of Bonus Act was also held not deductible, since the statutory mechanism created only a reserve for a possible future shortfall, not an accrued liability capable of reasonable estimation. As the amount remained contingent and under the assessee's control if unused, it was not allowable as expenditure. Case-Laws Income Tax Sat, 04 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32938