Tax Liability of 'Incentive Bonus' ::

Last updated: 27 November 2007

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Court :
HC

Brief :
Held by Ho"ble court that since the incentive bonus was paid to the employees wholly and exclusively for business purposes such bonus was allowable as deduction u/s 37(1).

Citation :
C.I.T. Vs. Raza Textiles Ltd.

Allowability of incentive bonus C.I.T. Vs. Raza Textiles Ltd. 5/9/2005 (2005) 148 Taxman 305( ALL.) Case Fact: Whether incentive bonus paid to employees for overtime and efficiency is allowable as business expenditure. Decision: Held by Ho"ble court that since the incentive bonus was paid to the employees wholly and exclusively for business purposes such bonus was allowable as deduction u/s 37(1).

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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