https://www.taxtmi.com/caselaws?id=277077 Gratuity payments to the widow of a deceased superintendent and to a superintendent on termination of employment were not deductible as expenditure laid out wholly and exclusively for the purpose of deriving agricultural income under section 5(j) of the Agricultural Income-tax Act, 1950. The Kerala HC applied the requirement of a real nexus between the payment and the earning of agricultural income, and noted that a voluntary payment can qualify only where commercial expediency is shown. As there was no established gratuity practice, employee expectation, salary effect, or business nexus, the amounts were treated as ex gratia payments for past service. The deduction claim was rejected. en-us Mon, 19 Jul 1965 00:00:00 +0530 Fri, 23 Nov 2018 17:40:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277077 Gratuity payments to the widow of a deceased superintendent and to a superintendent on termination of employment were not deductible as expenditure laid out wholly and exclusively for the purpose of deriving agricultural income under section 5(j) of the Agricultural Income-tax Act, 1950. The Kerala HC applied the requirement of a real nexus between the payment and the earning of agricultural income, and noted that a voluntary payment can qualify only where commercial expediency is shown. As there was no established gratuity practice, employee expectation, salary effect, or business nexus, the amounts were treated as ex gratia payments for past service. The deduction claim was rejected. Case-Laws Income Tax Mon, 19 Jul 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277077