1978 (1) TMI 17

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....VINDAN NAIR C.J.--The question referred to us for decision is in these terms : " Whether the Tribunal was right in holding that the sum of Rs. 2,50,361 being the amount provided for payment of bonus was allowable as a deduction in computing the income from business for the assessment year 1965-66 ?" The assessee had made certain provision for payment of bonus for the accounting year 1964-65 ....

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....hich the Tribunal had held that such deductions were permissible. This court held that deductions could not be permitted on a mere provision and that, in the absence of any agreement or actual payment, no deductions could be claimed. We only wish to add that, apart from agreement or payment, there may be cases where the liability might arise by virtue of some statutory provision. If a statutory pr....