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2002 (8) TMI 25 - RAJASTHAN HIGH COURTRemuneration to Employees - If the payment has been made to run the business which is necessary to run the business the payment is for the purpose of the business. It is also pertinent to note that the assessee-corporation is a public undertaking of the State. The payment has not been made to any friend or relation of the directors. The payment has been made to the workers with the commercial expediency. Therefore, the Tribunal was right in holding that the payment has been made with the object to run the business. The payment of ex gratia bonus is for the purpose of the business and that should not be disallowed.
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