https://www.taxtmi.com/caselaws?id=29381 The court ruled in favor of the assessee, allowing the gratuity paid to the deceased director's widow as a legitimate business expenditure for the assessment year 1963-64. The court emphasized the evolving trend of considering directors as employees under certain circumstances and established that gratuity payments are based on commercial expediency, applicable to service directors as well. The resolution approving the gratuity payment was deemed as a ratification of the payment already made in accordance with the company's articles of association. The court upheld the Tribunal's decision, affirming the allowability of the gratuity as a business expenditure. en-us Tue, 25 Aug 1981 00:00:00 +0530 Fri, 12 Mar 2010 15:07:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29381 The court ruled in favor of the assessee, allowing the gratuity paid to the deceased director's widow as a legitimate business expenditure for the assessment year 1963-64. The court emphasized the evolving trend of considering directors as employees under certain circumstances and established that gratuity payments are based on commercial expediency, applicable to service directors as well. The resolution approving the gratuity payment was deemed as a ratification of the payment already made in accordance with the company's articles of association. The court upheld the Tribunal's decision, affirming the allowability of the gratuity as a business expenditure. Case-Laws Income Tax Tue, 25 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29381