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1972 (2) TMI 8 - MADRAS HIGH COURTAssessee in this case is a dealer in paper. During the assessment year 1960-61 he paid a bonus of Rs. 39,541 to his employees and claimed it as allowance under section 10(2)(x) of the Income-tax Act, 1922. The Income-tax Officer took the view that the bonus paid by the assessee which is equivalent to 13 months' salary was excessive and not justified by the profits derived by him in the assessment year, and disallowed a sum of Rs. 19,000 from and out of the total claim of the assessee on the ground that the bonus equivalent to six months' salary can alone be justified - Held that disallowance of bonus to the extent of three months' salary was not valid
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