MENTAL BOX CO. OF INDIA LTD. vs THEIR WORKMEN

The Supreme Court addressed the computation of bonus under the Payment of Bonus Act, 1965, specifically Sections 4, 6, and 7. The Court held that deductions for gratuity and doubtful debts should not be added back to the gross profits, and that the employer can only deduct actual tax liabilities as per the Income-tax Act, 1961. The Tribunal's award was upheld, allowing Rs. 23.48 lakhs as depreciation instead of Rs. 28.82 lakhs claimed by the company, and Rs. 7 lakhs as development rebate instead of Rs. 8.8 lakhs.