https://www.taxtmi.com/caselaws?id=168775 A provision for pension under a trust deed was treated as a contingent future liability rather than an existing business liability, so it was not deductible under section 10(2)(xv) of the Indian Income-tax Act. The principle applied was that a sum set aside for a liability that may arise only on a future event is not expenditure actually incurred for tax deduction purposes. The proposed pension for the manager's widow also failed the business-purpose test because she was not an employee and had no business nexus with the company, so it was not expenditure laid out wholly and exclusively for the purposes of the business. en-us Tue, 20 Mar 1962 00:00:00 +0530 Thu, 26 Mar 2015 12:46:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168775 A provision for pension under a trust deed was treated as a contingent future liability rather than an existing business liability, so it was not deductible under section 10(2)(xv) of the Indian Income-tax Act. The principle applied was that a sum set aside for a liability that may arise only on a future event is not expenditure actually incurred for tax deduction purposes. The proposed pension for the manager's widow also failed the business-purpose test because she was not an employee and had no business nexus with the company, so it was not expenditure laid out wholly and exclusively for the purposes of the business. Case-Laws Income Tax Tue, 20 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168775