WORKMEN vs MANAGEMENT OF SIJUA (JHERRIAH) ELECTRIC SUPPLY CO. LTD.

The Supreme Court addressed the computation of bonus under the Bonus Act, specifically regarding deductions from gross profits. It held that under Section 6 of the Bonus Act, certain deductions are permissible, including development rebates and direct taxes, but not rebates payable to consumers under the Electricity Supply Act, as these do not constitute profit. The Court clarified that the actual revenue of the undertaking must be computed after deducting the rebate amount, affirming that such rebates are deductible items in determining the gross profits available for bonus calculations.