https://www.taxtmi.com/caselaws?id=38193 The court remanded the case to the Tribunal for further examination of the legal liability aspect regarding the provision for bonus. It emphasized the necessity of establishing a clear legal liability for bonus payments to qualify for deductions under section 36(1)(ii) of the Income-tax Act, 1961. The court highlighted that maintaining accounts on the mercantile system alone is insufficient without proving the existence of a legal liability for bonus payments. The judgment stressed the importance of a genuine legal obligation for bonus payments to be eligible for deductions. en-us Fri, 28 Apr 1978 00:00:00 +0530 Sat, 03 Apr 2010 16:23:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38193 The court remanded the case to the Tribunal for further examination of the legal liability aspect regarding the provision for bonus. It emphasized the necessity of establishing a clear legal liability for bonus payments to qualify for deductions under section 36(1)(ii) of the Income-tax Act, 1961. The court highlighted that maintaining accounts on the mercantile system alone is insufficient without proving the existence of a legal liability for bonus payments. The judgment stressed the importance of a genuine legal obligation for bonus payments to be eligible for deductions. Case-Laws Income Tax Fri, 28 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38193