https://www.taxtmi.com/caselaws?id=36054 Bonus liability under the Payment of Bonus Act, 1965 accrues in the accounting year itself as a statutory obligation, and an assessee following the mercantile system may deduct it in that year once the liability is established. The absence of a corresponding book entry is not decisive where sections 10 and 11 require payment of minimum or proportionate bonus and the amount is worked out by the statutory computation provisions. On that basis, the assessee was entitled to deduction of the bonus liability in the relevant assessment year despite no provision being made in the books. en-us Tue, 13 Nov 1979 00:00:00 +0530 Fri, 19 Mar 2010 11:04:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36054 Bonus liability under the Payment of Bonus Act, 1965 accrues in the accounting year itself as a statutory obligation, and an assessee following the mercantile system may deduct it in that year once the liability is established. The absence of a corresponding book entry is not decisive where sections 10 and 11 require payment of minimum or proportionate bonus and the amount is worked out by the statutory computation provisions. On that basis, the assessee was entitled to deduction of the bonus liability in the relevant assessment year despite no provision being made in the books. Case-Laws Income Tax Tue, 13 Nov 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36054