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2002 (6) TMI 33 - HC - Income TaxBusiness Expenditure, Ex-gratia Payment, Revenue Expenditure - "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the expenditure of Rs.3,70,755 incurred by the assessee as retirement compensation was for maintaining good relations with the employees and for the welfare of the employees and hence allowable as revenue expenditure?" - we are of the view that the deduction claimed by the company would not fall under section 36(1)(v) of the Act, but would be in the nature of revenue expenditure wholly and exclusively for the purposes of the business. In that view of the matter, in our view the decision arrived at by the Commissioner of Income-tax (Appeals) as well as by the Income-tax Appellate Tribunal cannot be faulted and the Tribunal was justified in coming to the conclusion in the facts and circumstances of the case that the expenditure of Rs.3,70,755 incurred by the assessee as retirement compensation was allow able as revenue expenditure.
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