https://www.taxtmi.com/caselaws?id=39936 Bonus computation under the Payment of Bonus Act must follow statutory adjustments and accepted commercial accounting where the Act does not exclude them. Depreciation had to be assessed by reference to depreciation admissible under the Income-tax Act, with the disputed figure remitted for fresh determination on evidence. Full development rebate admissible under tax law was allowable, not merely the reserve booked in the accounts. An estimated gratuity liability, if properly ascertainable and discounted, was deductible as a provision, not a reserve. Interest on a bona fide capital reserve created on revaluation of fixed assets was allowable. Direct taxes were to be computed on gross profits after prior charges, without first deducting bonus. en-us Tue, 20 Aug 1968 00:00:00 +0530 Mon, 11 Aug 2014 22:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39936 Bonus computation under the Payment of Bonus Act must follow statutory adjustments and accepted commercial accounting where the Act does not exclude them. Depreciation had to be assessed by reference to depreciation admissible under the Income-tax Act, with the disputed figure remitted for fresh determination on evidence. Full development rebate admissible under tax law was allowable, not merely the reserve booked in the accounts. An estimated gratuity liability, if properly ascertainable and discounted, was deductible as a provision, not a reserve. Interest on a bona fide capital reserve created on revaluation of fixed assets was allowable. Direct taxes were to be computed on gross profits after prior charges, without first deducting bonus. Case-Laws Income Tax Tue, 20 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39936