https://www.taxtmi.com/caselaws?id=36375 Contribution to a provident fund made before formal recognition was discussed as potentially deductible under section 37 of the Income-tax Act where the payment was commercially expedient and incurred wholly and exclusively for business purposes, even though it did not fall within section 36(1)(iv). The note also explains that gratuity paid on the basis of twelve months' last drawn salary may qualify as a reasonable business expenditure under section 37 when assessed by commercial reasonableness rather than strict necessity. The underlying principle stated is that voluntary expenditure promoting business efficiency and employee satisfaction can be allowable if reasonable and incurred in the course of earning profits. 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 Contribution to a provident fund made before formal recognition was discussed as potentially deductible under section 37 of the Income-tax Act where the payment was commercially expedient and incurred wholly and exclusively for business purposes, even though it did not fall within section 36(1)(iv). The note also explains that gratuity paid on the basis of twelve months' last drawn salary may qualify as a reasonable business expenditure under section 37 when assessed by commercial reasonableness rather than strict necessity. The underlying principle stated is that voluntary expenditure promoting business efficiency and employee satisfaction can be allowable if reasonable and incurred in the course of earning profits. Case-Laws Income Tax Wed, 15 Oct 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36375