Metal Box Company Of India Ltd. vs Their Workmen

Whether depreciation for bonus computation under the Payment of Bonus Act must be calculated as per Income Tax Act, 1961, and requires proper evidentiary proof when disputed by employees --- Held Yes; Whether development rebate for bonus computation is the full amount admissible under Income Tax Act, not limited to the reserve amount credited in profit and loss account --- Held Yes; Whether estimated gratuity liability, actuarially valued and debited in profit and loss account, constitutes a legitimate deduction under mercantile accounting principles and whether it is a provision (deductible) or reserve (to be added back) for bonus computation --- Held It is a legitimate deduction and constitutes a provision, not a reserve.