1989 LAB. I. C. 881 ::(1987) 55 FacLR 794 ::(1988) 1 Lab LN 205

Delhi High Court

Hon'ble Judge(s): Sunanda Bhandare , J

(A) Payment of Bonus Act (1965) , S.6(c), S.7, Sch II, Item 2(c)— Deductions of notional and not actual taxes is contemplated - Amounts under Sch. II, Item 2(c) and that under S. 6(c) need not be the same. S. 6(c) of the Payment of Bonus Act which provides for deduction of direct taxes which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that period subject to S. 7 presupposes that not actual but notional taxes are to be deducted. Therefore, the two amounts viz., the direct taxes including the provision (if any) for previous accounting year and the direct tax payable for the accounting year as provided under S. 6(c) need not necessarily be the same. (Para 10) (B) Payment of Bonus Act (1965) , S. 23 Proviso— Balance sheet and Profit and Loss Account of Companies - Accuracy of presumed - Proviso enables enquiry into their correctness if disputed - Company not producing material, Tribunal has to make its own calculations on reasonable basis. Though S. 23 of the Payment of Bonus Act presumes the balance sheet and profit and loss account produced by Corporation and Companies to be accurate without need for proof of accuracy, Proviso to the section provides ....