https://www.taxtmi.com/caselaws?id=69213 Gratuity and retrenchment compensation paid to workers were treated as revenue expenditure deductible under section 37 of the Income-tax Act, 1961. The liability had accrued while the business was still being carried on, and the payments were made in settlement of employee claims during the continuance of business activity, not as a post-closure or capital outlay. On those facts, the expenditure was incurred for business purposes and was therefore admissible as a deduction; the disallowance was unsustainable. en-us Tue, 07 Dec 1976 00:00:00 +0530 Tue, 05 Apr 2011 17:32:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69213 Gratuity and retrenchment compensation paid to workers were treated as revenue expenditure deductible under section 37 of the Income-tax Act, 1961. The liability had accrued while the business was still being carried on, and the payments were made in settlement of employee claims during the continuance of business activity, not as a post-closure or capital outlay. On those facts, the expenditure was incurred for business purposes and was therefore admissible as a deduction; the disallowance was unsustainable. Case-Laws Income Tax Tue, 07 Dec 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69213