https://www.taxtmi.com/caselaws?id=12643 A voluntary post-sale payment made long after completion of the transaction was not deductible as business expenditure because no subsisting encumbrance, legal obligation, defective title, or direct business necessity was proved; the disallowance was upheld. Weighted deduction under section 35B was also unavailable for commission paid to dealers in India, as the point was treated as covered against the assessee. The gratuity provision was accepted as an allowable deduction, with the issue decided in the assessee's favour. The governing principle is that a goodwill-based payment is deductible only when supported by the record and by a real legal or commercial compulsion. en-us Mon, 10 Sep 2001 00:00:00 +0530 Wed, 20 May 2009 17:44:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12643 A voluntary post-sale payment made long after completion of the transaction was not deductible as business expenditure because no subsisting encumbrance, legal obligation, defective title, or direct business necessity was proved; the disallowance was upheld. Weighted deduction under section 35B was also unavailable for commission paid to dealers in India, as the point was treated as covered against the assessee. The gratuity provision was accepted as an allowable deduction, with the issue decided in the assessee's favour. The governing principle is that a goodwill-based payment is deductible only when supported by the record and by a real legal or commercial compulsion. Case-Laws Income Tax Mon, 10 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12643