https://www.taxtmi.com/caselaws?id=39259 Bonus was treated as part of "salary" for disallowance under section 40(c)(iii) of the Income-tax Act, because Explanation 2 adopted the rule 2(h) definition from the Fourth Schedule and that definition did not expressly exclude bonus. The analysis also noted that labour law and the Payment of Bonus Act, 1965 recognise bonus as wages or additional wages rather than a purely voluntary payment. On that basis, the provision was read to include bonus within salary, and the issue was answered against the Revenue and in favour of the assessee. en-us Wed, 07 Jan 1976 00:00:00 +0530 Wed, 14 Apr 2010 11:50:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39259 Bonus was treated as part of "salary" for disallowance under section 40(c)(iii) of the Income-tax Act, because Explanation 2 adopted the rule 2(h) definition from the Fourth Schedule and that definition did not expressly exclude bonus. The analysis also noted that labour law and the Payment of Bonus Act, 1965 recognise bonus as wages or additional wages rather than a purely voluntary payment. On that basis, the provision was read to include bonus within salary, and the issue was answered against the Revenue and in favour of the assessee. Case-Laws Income Tax Wed, 07 Jan 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39259