1962 (11) TMI 80 - HC - Income Tax

Summary

The High Court of Kerala ruled in favor of the assessee, stating that the bonus paid to employees was reasonable based on the profits earned and low employee salaries. The Tribunal misdirected itself in law by disallowing part of the bonus paid. The assessee paid Rs. 10,125 as bonus to 34 employees out of a profit of Rs. 91,812 in the year ending March 31, 1956. The bonus was reduced by taxing authorities, but the court found it reasonable considering the circumstances.