https://www.taxtmi.com/caselaws?id=49249 In assessing the reasonableness of bonus under the proviso to section 10(2)(x), the Tribunal must consider the employee's pay and conditions of service, the profits of the business, and the general practice in similar businesses. A disallowance based only on the view that the claim was unrelated to salary, or on suspicious account entries, is legally flawed if the relevant statutory factors are not addressed. On the record, the employees were low paid, the profits were substantial, and no contrary industry practice or other material justified the disallowance, so the Tribunal misdirected itself in law. en-us Tue, 16 Nov 1965 00:00:00 +0530 Tue, 19 Aug 2014 08:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49249 In assessing the reasonableness of bonus under the proviso to section 10(2)(x), the Tribunal must consider the employee's pay and conditions of service, the profits of the business, and the general practice in similar businesses. A disallowance based only on the view that the claim was unrelated to salary, or on suspicious account entries, is legally flawed if the relevant statutory factors are not addressed. On the record, the employees were low paid, the profits were substantial, and no contrary industry practice or other material justified the disallowance, so the Tribunal misdirected itself in law. Case-Laws Income Tax Tue, 16 Nov 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49249