https://www.taxtmi.com/caselaws?id=35679 Gratuity paid to plantation workers after their services had already ended, and assumed by the transferee under a bifurcation or transfer arrangement, was treated as a capital charge rather than revenue expenditure. Although gratuity paid in discharge of a statutory obligation is ordinarily deductible, the liability here arose from the terms of transfer and formed part of the consideration for acquiring the estate, which was not transferred as a running concern. On that basis, the payment was not incurred in the ordinary course of business and was not allowable as a deduction under section 5(j) of the Kerala Agricultural Income-tax Act, 1950. en-us Wed, 03 Dec 1980 00:00:00 +0530 Tue, 16 Mar 2010 10:40:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35679 Gratuity paid to plantation workers after their services had already ended, and assumed by the transferee under a bifurcation or transfer arrangement, was treated as a capital charge rather than revenue expenditure. Although gratuity paid in discharge of a statutory obligation is ordinarily deductible, the liability here arose from the terms of transfer and formed part of the consideration for acquiring the estate, which was not transferred as a running concern. On that basis, the payment was not incurred in the ordinary course of business and was not allowable as a deduction under section 5(j) of the Kerala Agricultural Income-tax Act, 1950. Case-Laws Income Tax Wed, 03 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35679