https://www.taxtmi.com/caselaws?id=58167 Bonus paid to employees for past services, including a payment made on a business anniversary, may fall within section 36(1)(ii) of the Income-tax Act as employee bonus rather than an ex gratia payment outside that provision. Section 37(1) cannot be used to claim deduction where the specific rule in section 36(1)(ii) applies. If the payment is not covered by the Payment of Bonus Act, 1965, deductibility depends on the second proviso to section 36(1)(ii), including reasonableness with reference to employee remuneration, service conditions, profits, and comparable business practice. en-us Wed, 27 Feb 1985 00:00:00 +0530 Fri, 17 Dec 2010 16:42:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58167 Bonus paid to employees for past services, including a payment made on a business anniversary, may fall within section 36(1)(ii) of the Income-tax Act as employee bonus rather than an ex gratia payment outside that provision. Section 37(1) cannot be used to claim deduction where the specific rule in section 36(1)(ii) applies. If the payment is not covered by the Payment of Bonus Act, 1965, deductibility depends on the second proviso to section 36(1)(ii), including reasonableness with reference to employee remuneration, service conditions, profits, and comparable business practice. Case-Laws Income Tax Wed, 27 Feb 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58167