INDIAN OXYGEN LIMITED vs THEIR WORKMEN

The Supreme Court held that under the Payment of Bonus Act, 1965, an employer is entitled to compute tax liability without deducting the bonus payable from gross profits, reaffirming the principle established in Metal Box Co. The Court found that Parliament did not amend the Act to change this principle, thus the Tribunal's decision to deduct bonus from gross profits for tax calculation was incorrect. Additionally, the Tribunal's consideration of tax concessions related to bonus in surplus division was also deemed erroneous, leading to the conclusion that the Tribunal's calculations were flawed.