https://www.taxtmi.com/caselaws?id=39785 The High Court of Madras ruled that provisions made for bonus payments by an assessee-company were not allowable deductions in the computation of profits and gains for assessment years 1962-63 and 1963-64. The court held that the bonus provision was a contingent liability and not an accrued liability, emphasizing that the mere inclusion of amounts in accounts did not establish an admitted liability by the employer. The court disallowed the amounts as deductions, stating that the assessing authorities would determine their deductibility in future assessment proceedings. en-us Wed, 19 Jun 1974 00:00:00 +0530 Tue, 20 Apr 2010 12:32:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39785 The High Court of Madras ruled that provisions made for bonus payments by an assessee-company were not allowable deductions in the computation of profits and gains for assessment years 1962-63 and 1963-64. The court held that the bonus provision was a contingent liability and not an accrued liability, emphasizing that the mere inclusion of amounts in accounts did not establish an admitted liability by the employer. The court disallowed the amounts as deductions, stating that the assessing authorities would determine their deductibility in future assessment proceedings. Case-Laws Income Tax Wed, 19 Jun 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39785