https://www.taxtmi.com/caselaws?id=25883 Payments made under a pension arrangement for a long-serving key employee, and later for his widow in specified contingencies, were treated as business expenditure where the arrangement was linked to service expectations, responsibilities and commercial expediency. The Court accepted that legitimate business needs must be judged from prudent business judgment, and that securing loyal and efficient service could justify the pension commitment. The widow's benefit was viewed as part of the same commercial arrangement rather than an independent or extraneous payment. The expenditure was therefore held to be laid out wholly and exclusively for the purpose of the assessee's business and allowable as a deduction. en-us Tue, 02 Sep 1986 00:00:00 +0530 Mon, 01 Feb 2010 14:26:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25883 Payments made under a pension arrangement for a long-serving key employee, and later for his widow in specified contingencies, were treated as business expenditure where the arrangement was linked to service expectations, responsibilities and commercial expediency. The Court accepted that legitimate business needs must be judged from prudent business judgment, and that securing loyal and efficient service could justify the pension commitment. The widow's benefit was viewed as part of the same commercial arrangement rather than an independent or extraneous payment. The expenditure was therefore held to be laid out wholly and exclusively for the purpose of the assessee's business and allowable as a deduction. Case-Laws Income Tax Tue, 02 Sep 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25883