https://www.taxtmi.com/caselaws?id=39229 Under the mercantile system, a bonus provision is deductible only when the liability has accrued and become an ascertained, enforceable obligation during the relevant previous year. Because the Government notification creating the bonus liability was issued after the accounts were closed, no enforceable obligation existed in the assessment year 1961-62. The fact that the bonus related to that year's profits did not make it deductible for that year. The provision was therefore not allowable as a deduction, and the question was answered against the assessee. en-us Wed, 23 Apr 1975 00:00:00 +0530 Tue, 13 Apr 2010 18:12:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39229 Under the mercantile system, a bonus provision is deductible only when the liability has accrued and become an ascertained, enforceable obligation during the relevant previous year. Because the Government notification creating the bonus liability was issued after the accounts were closed, no enforceable obligation existed in the assessment year 1961-62. The fact that the bonus related to that year's profits did not make it deductible for that year. The provision was therefore not allowable as a deduction, and the question was answered against the assessee. Case-Laws Income Tax Wed, 23 Apr 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39229