M/s. TULSIDAS KHIMJI vs THEIR WORKMEN

The Supreme Court addressed the issue of bonus entitlement under the Industrial Disputes Act, 1947, determining that workmen could claim bonuses on three bases: profit-sharing, customary, and implied terms of service. The Court upheld the Tribunal's decision to award a bonus amounting to one-fourth of total basic wages, less previously paid bonuses, and confirmed the entitlement to a customary bonus of one month's wages. The Court also ruled that Rs. 53,000 should be allowed as a deduction for income-tax, rejecting the double benefit for employers regarding income-tax deductions.