https://www.taxtmi.com/caselaws?id=64416 A provision for leave salary and leave wages was not deductible because the liability was contingent, depending on uncertain future events, and was not shown to be an ascertained present obligation capable of reliable valuation. Ex gratia payments to employees and extra salary or bonus paid to the General Manager were also disallowed because they were not proved to be customary bonus, nor linked to any settlement, agreement, or special occasion, and bonus-like payments cannot escape statutory restriction merely by being labelled otherwise. The article states that deductible business expenditure requires a present liability in praesenti and a lawful basis for the payment. en-us Thu, 13 Sep 1984 00:00:00 +0530 Mon, 07 Feb 2011 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64416 A provision for leave salary and leave wages was not deductible because the liability was contingent, depending on uncertain future events, and was not shown to be an ascertained present obligation capable of reliable valuation. Ex gratia payments to employees and extra salary or bonus paid to the General Manager were also disallowed because they were not proved to be customary bonus, nor linked to any settlement, agreement, or special occasion, and bonus-like payments cannot escape statutory restriction merely by being labelled otherwise. The article states that deductible business expenditure requires a present liability in praesenti and a lawful basis for the payment. Case-Laws Income Tax Thu, 13 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64416