https://www.taxtmi.com/caselaws?id=60277 Bonus paid under a settlement may qualify as a deductible business expense only if the settlement is valid under the amended section 34 of the Payment of Bonus Act, 1965, including prior approval of the appropriate Government and compliance with the statutory ceiling in the third proviso. The earlier view that such settlement-based payment fell outside the Act was rejected. Where approval exists and the ceiling is not breached, the payment falls within the statutory framework and may be deductible; where compliance is absent, only the excess over the permissible limit is liable to disallowance. The matter therefore turns on factual verification of government approval and ceiling compliance. en-us Fri, 30 Nov 1984 00:00:00 +0530 Tue, 04 Jan 2011 15:08:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60277 Bonus paid under a settlement may qualify as a deductible business expense only if the settlement is valid under the amended section 34 of the Payment of Bonus Act, 1965, including prior approval of the appropriate Government and compliance with the statutory ceiling in the third proviso. The earlier view that such settlement-based payment fell outside the Act was rejected. Where approval exists and the ceiling is not breached, the payment falls within the statutory framework and may be deductible; where compliance is absent, only the excess over the permissible limit is liable to disallowance. The matter therefore turns on factual verification of government approval and ceiling compliance. Case-Laws Income Tax Fri, 30 Nov 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60277