1992 (10) TMI 250 - HC - Income Tax

Summary

The High Court of Bombay held that bonus paid to employees is allowable under the second proviso to section 36(1)(ii) of the Income-tax Act, 1961. The Court ruled in favor of the assessee, allowing the deduction of bonus paid to employees. The Court found no legal error in applying the second proviso and answered both questions in favor of the assessee.