https://www.taxtmi.com/caselaws?id=18131 The High Court upheld the Tribunal's decision to disallow Rs. 54,000 paid to staff as work incentive, ruling it was ex-gratia and not wholly for business purposes. The Court emphasized assessing authorities' right to scrutinize business expenditures, citing relevant case law. The absence of a payment scheme, no precedent of similar payments by the predecessor firm, and lack of evidence linking payments to increased sales led to the decision against the assessee. Judge V. K. Singhal concurred, highlighting the disproportionate payments and failure to prove business necessity. en-us Wed, 08 May 1996 00:00:00 +0530 Tue, 29 Sep 2009 10:20:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18131 The High Court upheld the Tribunal's decision to disallow Rs. 54,000 paid to staff as work incentive, ruling it was ex-gratia and not wholly for business purposes. The Court emphasized assessing authorities' right to scrutinize business expenditures, citing relevant case law. The absence of a payment scheme, no precedent of similar payments by the predecessor firm, and lack of evidence linking payments to increased sales led to the decision against the assessee. Judge V. K. Singhal concurred, highlighting the disproportionate payments and failure to prove business necessity. Case-Laws Income Tax Wed, 08 May 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18131