1997 (3) TMI 21 - HC - Income Tax

Summary

The High Court of Madras ruled that incentive bonus paid to employees is allowable under section 37 of the Income-tax Act, 1961. The court held that such bonuses are not subject to the Payment of Bonus Act and therefore deductible as business expenses. The decision was based on precedents set in earlier cases. The court answered the question in favor of the assessee, denying costs.