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 w

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