https://www.taxtmi.com/caselaws?id=49586 A contractual obligation to pay bonus or make provident fund contributions calculated by reference to profits does not exclude the Excess Profits Tax Officer's discretion under rule 12(1) of the First Schedule to the Excess Profits Tax Act, 1940. The Officer may examine whether the amounts claimed are reasonable and necessary having regard to the business needs and the services rendered, and may disallow or limit deductions that are excessive or unreasonable. On the material considered, including the disparity between salaries and the claimed payments and comparative business practice, the payments were found excessive, and the restriction of the deduction was sustained. en-us Thu, 14 May 1959 00:00:00 +0530 Thu, 04 Sep 2014 10:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49586 A contractual obligation to pay bonus or make provident fund contributions calculated by reference to profits does not exclude the Excess Profits Tax Officer's discretion under rule 12(1) of the First Schedule to the Excess Profits Tax Act, 1940. The Officer may examine whether the amounts claimed are reasonable and necessary having regard to the business needs and the services rendered, and may disallow or limit deductions that are excessive or unreasonable. On the material considered, including the disparity between salaries and the claimed payments and comparative business practice, the payments were found excessive, and the restriction of the deduction was sustained. Case-Laws Income Tax Thu, 14 May 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49586