https://www.taxtmi.com/caselaws?id=173390 Compensation paid to a company chairman's widow was not deductible because it was not shown to have been incurred wholly and exclusively for the business; a payment driven by sympathy or generosity does not satisfy the business-purpose test merely because it may improve morale. Under the mercantile system, the liability also had not accrued in the relevant accounting year, since it was not fixed or quantified until a later resolution. The reference therefore went against the assessee on both deductibility and year of accrual. en-us Mon, 14 May 1962 00:00:00 +0530 Mon, 14 Sep 2015 18:45:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173390 Compensation paid to a company chairman's widow was not deductible because it was not shown to have been incurred wholly and exclusively for the business; a payment driven by sympathy or generosity does not satisfy the business-purpose test merely because it may improve morale. Under the mercantile system, the liability also had not accrued in the relevant accounting year, since it was not fixed or quantified until a later resolution. The reference therefore went against the assessee on both deductibility and year of accrual. Case-Laws Income Tax Mon, 14 May 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173390