https://www.taxtmi.com/caselaws?id=19879 A one-time retirement gratuity paid to a chairman-cum-full-time director is outside the periodic expenditure ceilings under sections 40(c) and 40A(5) of the Income-tax Act, 1961. Those provisions govern remuneration, perquisites, allowances and other expenditure of a recurring or apportionable character during the previous year, so they do not cover a lump-sum payment on cessation of service. Section 40A(7) deals with provisions for gratuity and not actual gratuity paid during the year. On that reasoning, the retirement gratuity was not disallowed under either section 40(c)(i) or section 40A(5) and was treated as allowable business expenditure. en-us Fri, 17 Dec 1993 00:00:00 +0530 Tue, 10 Nov 2009 13:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19879 A one-time retirement gratuity paid to a chairman-cum-full-time director is outside the periodic expenditure ceilings under sections 40(c) and 40A(5) of the Income-tax Act, 1961. Those provisions govern remuneration, perquisites, allowances and other expenditure of a recurring or apportionable character during the previous year, so they do not cover a lump-sum payment on cessation of service. Section 40A(7) deals with provisions for gratuity and not actual gratuity paid during the year. On that reasoning, the retirement gratuity was not disallowed under either section 40(c)(i) or section 40A(5) and was treated as allowable business expenditure. Case-Laws Income Tax Fri, 17 Dec 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19879