Provision made to incentivise performance of workers cannot be disallowed u/s 43B(c)

DCIT Vs M/s Sri Shanmugavel Mills Ltd (Madras High Court)- The facts of the case, thus show that the provisions made was not tax payment of bonus but payment, as part of the wages and as an incentive for the performance of the workers. It is also noted that an amount of Rs. 10,25,069/- was paid to the workers, in the subsequent year, in excess of the provision. Considering the fact provision for Rs. 9,33,430/- had been made towards the incentive for the performance of the workers, we do not find any reason to differ from the findings of the Appellate Tribunal. Hence, the Tax Case Appeal stands...