Ex-gratia Bonus was allowable u/s 37(1) as Business Expenditure of Indian Express

Indian Express Newspapers (Bombay) Ltd. Vs CIT (Bombay High Court) Conclusion: Exgratia bonus paid to the employees over and above the eligible bonus under the Payment of Bonus Act was allowable as expenditure under Section 37 (1). Held: AO found that assessee had paid exgratia bonus amounting in all to Rs.16,28,258/-. He negatived assessee’s claim of deduction in view of first proviso to Section 36(1)(ii) of the Act and observed that the disallowances was subject to rectification and in case it was shown that assessee had allocable surplus to pay bonus of 8.33% he would revise the assessmen...