1981 (12) TMI 105 - AT - Income Tax

Summary

The appeal was filed by M/s. T. Alagappan and Sons, contractors Sankari Drug against the disallowance of Rs. 20,000 for provision of bonus. The Appellate Tribunal found that the amount was credited to employees, creating an obligation to pay, and allowed the deduction based on the mercantile system. The Tribunal considered the bonus as a deferred wage and allowed the appeal.