Financial Commitment Charges & Excess Gratuity Deductible as Revenue Expenses

The High Court of Bombay held that commitment charges paid to financial institutions are deductible as revenue expenditure, citing India Cements Ltd. v. CIT. Additionally, excess gratuity paid to monthly wage earners was allowed as a deductible expense, following CIT v. Hindustan Motors Ltd. The appeal was dismissed for lack of substantial legal question.

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The High Court of Bombay ruled that commitment charges paid to financial institutions are deductible as revenue expenditure based on the India Cements Ltd. v. CIT case. The court also allowed the excess gratuity paid to monthly wage earners as a deductible expense, following the CIT v. Hindustan Motors Ltd. case. The appeal was dismissed as no substantial question of law arose.

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