Hukam Chand Jute Mills Ltd vs Second Industrial Tribunal, West ... on 11 April, 1979
In fact, this distinction between the bonus payable under the Payment of Bonus Act and other bonus which is not a profit-sharing bonus was brought out by the Supreme Court in the case of Hukumchand Jute Mills Ltd. v. Second Industrial Tribunal AIR 1979 SC 876 where it was held that it was clear that the Act did not deal with the bonus other than profit-sharing bonus. It, therefore, becomes necessary for us to consider whether the amount calculated at 12 per cent, paid over and above the bonus payable under the Payment of Bonus Act, was in the nature of profit-sharing bonus or other bonus and whether it is deductible under Section 36(1)(ii) or under Section 37. Clearly it is not a profit-sharing bonus because the agreement did not envisage that it should be paid as a share of profit. This is underlined by the admitted fact that the additional amount was not to be taken into account for the purpose of set on and set off of the bonus from the available surplus of the other accounting years. Clearly, therefore, this additional amount was not a profit-sharing bonus at all. The question is whether it is a bonus otherwise allowable under Section 36(1)(ii) or an expenditure laid out for the purpose of the business under Section 37.