Case: Commissioner of Income Tax, Madhya Pradesh, Nagpur and Bhandara Vs. Kalyanmal Mills Limited

The assessee is limited company which owns a textile mill. It had paid Rs. 2, 57, 000 as bonus to its workers in respect of the calendar year 1947, and claimed its a deduction in respect of the assessment yearA dispute had arisen between the workmen and the assessee and it was settled by an award made in January, 1949, by the tribunal under the Industrial Disputes Act.

Reasoning:
Following our decision and the reasoning in Commissioner ofv. Swadeshi Cotton and Flour Mills, we hold that the High Court was right in answering the question in the affirmative.