https://www.taxtmi.com/caselaws?id=38286 A provision for staff and labour bonus is deductible only if factual enquiry shows it represents an accrued or admitted liability, not a mere accounting entry. The High Court noted that the record did not establish whether the provision arose from an admitted obligation, past practice, an understanding with workmen, a board resolution, or a settled claim by agreement or adjudication. Because those factual foundations were missing, the deductibility question could not be answered on the existing material and required fresh examination on the basis on which the bonus provision was made. en-us Thu, 05 Jan 1978 00:00:00 +0530 Mon, 05 Apr 2010 13:06:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38286 A provision for staff and labour bonus is deductible only if factual enquiry shows it represents an accrued or admitted liability, not a mere accounting entry. The High Court noted that the record did not establish whether the provision arose from an admitted obligation, past practice, an understanding with workmen, a board resolution, or a settled claim by agreement or adjudication. Because those factual foundations were missing, the deductibility question could not be answered on the existing material and required fresh examination on the basis on which the bonus provision was made. Case-Laws Income Tax Thu, 05 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38286