https://www.taxtmi.com/caselaws?id=291676 The Court upheld the Tribunal's decision, allowing the ex-gratia payment as a deductible expense for the assessment year 2007-2008. It determined that the payment had a commercial nexus, as it was approved by the Board and ratified in the Annual General Meeting, in accordance with Section 63 of the Multi State Co-operative Societies Act. The Court emphasized the consistent practice of providing incentives to employees by the assessee, supported by past approvals, and found the ex-gratia payments to be commercially expedient and hence allowable. The appeal was dismissed without costs. en-us Tue, 25 Jul 2017 00:00:00 +0530 Sat, 21 Nov 2020 10:09:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291676 The Court upheld the Tribunal's decision, allowing the ex-gratia payment as a deductible expense for the assessment year 2007-2008. It determined that the payment had a commercial nexus, as it was approved by the Board and ratified in the Annual General Meeting, in accordance with Section 63 of the Multi State Co-operative Societies Act. The Court emphasized the consistent practice of providing incentives to employees by the assessee, supported by past approvals, and found the ex-gratia payments to be commercially expedient and hence allowable. The appeal was dismissed without costs. Case-Laws Income Tax Tue, 25 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291676