assessee has also not given any details regarding calculation of 'allocable surplus' for distribution as bonus under the Bonus Act . During the accounting ... therefore, appears on a perusal of account that there was no allocable surplus. Further, Section 16 of the Payment of Bonus Act lays down that
making of the payment in excess of allocable surplus and so long as there was allocable surplus in excess of the minimum bonus payable ... Where for any accounting year, there is no allocable surplus or the allocable surplus in respect of that year falls short of the amount
assessee has also not given any details regarding calculation of 'allocable surplus' for distribution as bonus under the Bonus Act . During the accounting ... therefore, appears on perusal of account that there was no allocable surplus. Further, section 16 of Payment of Bonus Act lays down that where
show the amount of allocable surplus as per Payment of Bonus
Act to establish that such allocable surplus was more than 20% of
salary ... computation of allocable surplus compute in
'Form A' as per the Payment of Bonus Act . The amount of allocable
surplus computed under
shall be set off against the available surplus and any allocable surplus remaining undistributed has to be set on and set off both backwards ... come out of the allocable surplus of the next year if there is no allocable surplus in the current year. It is admitted that this
however, pointed out that the allocable surplus available for the year in question for distribution of bonus as per the Payment of Bonus ... employer has no allocable surplus in the accounting year or the amount of such allocable surplus is only so much that, but for the provisions
commission and brokerage was paid. As regards bonus, the existence of allocable surplus was required to be verified so as to justify the payment ... allocable surplus to justify the payment of bonus at 20%. It is not anybody's case that there was no allocable surplus to justify
Labour welfare and incentive'. The ITO also went through the allocable surplus, wherein he found that bonus amounting to Rs. 7,55,877 only ... held that, "since the assessee-company had no allocable surplus, it should have paid bonus to its employees only at the rate
making provision @ 20%
of salary and where is the computation of allocable of surplus as per the
payment of Companies Act, 1965 justifying provision ... show the amount of allocable surplus as per
the payment of Bonus Act to establish that such allocable surplus was
more than 20% of salary
their wages. The ITO observed that the assessee had no allocable surplus and, therefore, it was liable under the Bonus Act to pay only ... there is no allocable surplus. The assessing officer seems to have thought that since there was no allocable surplus, the assessee was debarred
