https://www.taxtmi.com/caselaws?id=11956 Ex gratia bonus paid to employees was treated as allowable business expenditure under section 37 of the Income-tax Act, 1961 because it was incurred in the course of business for commercial expediency. The payment was linked to industrial harmony, smooth closure operations, and compliance with wage-related commitments, showing a direct business purpose rather than a personal or extraneous outlay. Expenditure that facilitates the running of the business and is laid out wholly and exclusively for business purposes falls within section 37, so the bonus could not be disallowed. en-us Fri, 23 Aug 2002 00:00:00 +0530 Sat, 13 Feb 2010 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11956 Ex gratia bonus paid to employees was treated as allowable business expenditure under section 37 of the Income-tax Act, 1961 because it was incurred in the course of business for commercial expediency. The payment was linked to industrial harmony, smooth closure operations, and compliance with wage-related commitments, showing a direct business purpose rather than a personal or extraneous outlay. Expenditure that facilitates the running of the business and is laid out wholly and exclusively for business purposes falls within section 37, so the bonus could not be disallowed. Case-Laws Income Tax Fri, 23 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11956