https://www.taxtmi.com/caselaws?id=400988 Ex gratia expenditure was held to be an allowable deduction because the liability had crystallised after Board approval, was recorded in the accounts and was actually paid to employees. On those facts, it could not be treated as a contingent liability liable to disallowance under the Income-tax Act. The Tribunal also relied on the fact that the same claim had been accepted in the assessee's own earlier and later assessment years, and it declined to give weight to an out-of-jurisdiction decision cited by the Revenue. The disallowance was therefore unsustainable. en-us Wed, 18 Nov 2020 00:00:00 +0530 Mon, 23 Nov 2020 20:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400988 Ex gratia expenditure was held to be an allowable deduction because the liability had crystallised after Board approval, was recorded in the accounts and was actually paid to employees. On those facts, it could not be treated as a contingent liability liable to disallowance under the Income-tax Act. The Tribunal also relied on the fact that the same claim had been accepted in the assessee's own earlier and later assessment years, and it declined to give weight to an out-of-jurisdiction decision cited by the Revenue. The disallowance was therefore unsustainable. Case-Laws Income Tax Wed, 18 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400988