https://www.taxtmi.com/caselaws?id=37596 A provision for bonus is not deductible in computing business income when no actual payment has been made and no enforceable liability arises from contract or statute. The Court followed its earlier view that a mere book provision does not create an allowable deduction. It noted that a deduction may still be available where a statutory provision gives rise to an accrued liability, but no such statutory or contractual basis was established for the relevant year. The claim was therefore disallowed and the issue was answered against the assessee. en-us Mon, 30 Jan 1978 00:00:00 +0530 Sun, 08 May 2011 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37596 A provision for bonus is not deductible in computing business income when no actual payment has been made and no enforceable liability arises from contract or statute. The Court followed its earlier view that a mere book provision does not create an allowable deduction. It noted that a deduction may still be available where a statutory provision gives rise to an accrued liability, but no such statutory or contractual basis was established for the relevant year. The claim was therefore disallowed and the issue was answered against the assessee. Case-Laws Income Tax Mon, 30 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37596