https://www.taxtmi.com/caselaws?id=276920 A voluntary gratuity paid to a retiring employee was held not to be deductible as revenue expenditure because, although it created no enduring asset and was not capital expenditure, deductibility required proof that the outlay was incurred wholly and exclusively for business purposes. The payment was made in recognition of past services, with no evidence of commercial necessity, business expediency, established practice, or any connection with the future conduct of the business. As the facts did not show that the outgoing was directed to the assessee's business interests, it was not an admissible deduction under section 10(2)(xv) of the Income-tax Act, 1922. en-us Thu, 20 Dec 1956 00:00:00 +0530 Tue, 20 Nov 2018 14:22:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276920 A voluntary gratuity paid to a retiring employee was held not to be deductible as revenue expenditure because, although it created no enduring asset and was not capital expenditure, deductibility required proof that the outlay was incurred wholly and exclusively for business purposes. The payment was made in recognition of past services, with no evidence of commercial necessity, business expediency, established practice, or any connection with the future conduct of the business. As the facts did not show that the outgoing was directed to the assessee's business interests, it was not an admissible deduction under section 10(2)(xv) of the Income-tax Act, 1922. Case-Laws Income Tax Thu, 20 Dec 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276920