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2005 (5) TMI 20 - ALLAHABAD HIGH COURT
Incentive bonus – deduction - In the present case, the Tribunal has come to the conclusion that workers were allowed to put in extra time and increase the production by their labour, good attendance and efficiency. For this extra time or overtime extra single wages was paid. It was this payment, which was treated as incentive bonus by the assessee. We are of the opinion, that such incentive bonus does not fall within the purview of the Payment of Bonus Act and, thus, it is not covered under section 36(1) (ii) of the Act. Since the payment was wholly and exclusively for the purpose of business it was liable for deduction under section 37(1)