https://www.taxtmi.com/caselaws?id=36375 Commercially expedient and reasonable employee-benefit expenditure may be deductible under section 37 even without a legal obligation. Provident fund contributions made before the fund's recognition fall outside the specific deduction provision for recognised funds, but may qualify under section 37 where incurred wholly and exclusively for business purposes, including employee welfare and retention. Gratuity paid to dependants or legal representatives of deceased employees may similarly be deductible when commercially reasonable. Gratuity calculated with reference to twelve months' last-drawn salary was treated as a reasonable business allowance. The substantive tax questions were resolved in favour of deductibility, while an incompetent reference issue was not entertained. en-us Wed, 15 Oct 1980 00:00:00 +0530 Mon, 22 Mar 2010 10:34:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36375 Commercially expedient and reasonable employee-benefit expenditure may be deductible under section 37 even without a legal obligation. Provident fund contributions made before the fund's recognition fall outside the specific deduction provision for recognised funds, but may qualify under section 37 where incurred wholly and exclusively for business purposes, including employee welfare and retention. Gratuity paid to dependants or legal representatives of deceased employees may similarly be deductible when commercially reasonable. Gratuity calculated with reference to twelve months' last-drawn salary was treated as a reasonable business allowance. The substantive tax questions were resolved in favour of deductibility, while an incompetent reference issue was not entertained. Case-Laws Income Tax Wed, 15 Oct 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36375