THE TATA OIL MILLS CO. LTD. vs ITS WORKMEN AND OTHERS

The Supreme Court held that in determining gross profits for bonus calculations under the Full Bench formula, certain income items, including rent and estate revenue, could not be excluded as they were earned in the normal course of business, despite not being directly linked to the efforts of labor. However, a profit of Rs. 3 lacs due to a change in accounting method was deemed extraneous and excluded from gross profits. The Court also ruled that the appellant was entitled to a 4% return on depreciation reserves used as working capital, as these reserves would otherwise incur borrowing costs.