https://www.taxtmi.com/caselaws?id=36811 A pension paid to a former employee under a board resolution was treated as a deductible business expense because it was granted in recognition of long service and as a retirement benefit linked to commercial expediency. The employee had served the company for more than thirty years, had been continued after retirement, and had an expectation of retirement benefits under the company's gratuity arrangement. The payment was not viewed as a purely voluntary ex gratia payment, especially since a similar benefit had earlier been granted to another employee. Applying a businessman's perspective, the amount was considered reasonable and incurred in the course of business, so it was allowable in computing income. en-us Tue, 11 Jul 1978 00:00:00 +0530 Wed, 24 Mar 2010 16:33:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36811 A pension paid to a former employee under a board resolution was treated as a deductible business expense because it was granted in recognition of long service and as a retirement benefit linked to commercial expediency. The employee had served the company for more than thirty years, had been continued after retirement, and had an expectation of retirement benefits under the company's gratuity arrangement. The payment was not viewed as a purely voluntary ex gratia payment, especially since a similar benefit had earlier been granted to another employee. Applying a businessman's perspective, the amount was considered reasonable and incurred in the course of business, so it was allowable in computing income. Case-Laws Income Tax Tue, 11 Jul 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36811