https://www.taxtmi.com/caselaws?id=12025 Gratuity paid to a former sales manager was not allowable as business expenditure because it was not shown to arise from any statutory obligation, enforceable service condition, or established practice. The record also did not show that the employee had accepted lower salary in expectation of retirement benefits or that any proven commercial necessity justified the payment. In the absence of evidence of comparable payments or a demonstrated business basis for the outlay, the gratuity could not be treated as an admissible deduction. The issue was answered against the assessee and in favour of the Revenue. en-us Tue, 09 Jul 2002 00:00:00 +0530 Sun, 14 Feb 2010 17:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12025 Gratuity paid to a former sales manager was not allowable as business expenditure because it was not shown to arise from any statutory obligation, enforceable service condition, or established practice. The record also did not show that the employee had accepted lower salary in expectation of retirement benefits or that any proven commercial necessity justified the payment. In the absence of evidence of comparable payments or a demonstrated business basis for the outlay, the gratuity could not be treated as an admissible deduction. The issue was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Tue, 09 Jul 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12025