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2021 (11) TMI 572 - HC - Income TaxDeduction in respect of ex-gratia payment made to employees when such payments cannot be treated as business expediency or legal requirement allowable u/s 37(1) - HELD THAT:- Identical substantial question of law was considered by a Division Bench of this Court in Lakshmi Vilas Bank Ltd. [2014 (4) TMI 826 - MADRAS HIGH COURT] held that there being no restriction or prohibition under Section 37 of the Income Tax Act, 1961 on the claim for deduction on the ex-gratia payment given in the form of an incentive to the workman out of business expediency and the payment being a business expenditure, the Revenue's case deserves to be dismissed at the admission stage itself. Division Bench referred to the decision of the Calcutta High Court in CIT vs. National Engineering Industries Ltd [1993 (7) TMI 40 - CALCUTTA HIGH COURT] which decision was followed by the Tribunal in the impugned order. Therefore, we find that the substantial question of law, raised in this appeal, has to be answered against the Revenue
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