https://www.taxtmi.com/caselaws?id=38092 Gratuity paid to an employee during service, pursuant to prior intimation and a board resolution, may be deductible as business expenditure if it satisfies any one of the recognised tests for being laid out wholly and exclusively for business. The Court treated the Gordon Woodroffe Leather Manufacturing Co. tests as disjunctive and alternative, and accepted both a sufficient employee expectation of gratuity and commercial expediency on the facts. The absence of a fixed formula for quantifying the gratuity did not by itself defeat the deduction, and the revenue failed to show that the amount was excessive or unreasonable. en-us Tue, 10 Jan 1978 00:00:00 +0530 Sat, 03 Apr 2010 11:43:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38092 Gratuity paid to an employee during service, pursuant to prior intimation and a board resolution, may be deductible as business expenditure if it satisfies any one of the recognised tests for being laid out wholly and exclusively for business. The Court treated the Gordon Woodroffe Leather Manufacturing Co. tests as disjunctive and alternative, and accepted both a sufficient employee expectation of gratuity and commercial expediency on the facts. The absence of a fixed formula for quantifying the gratuity did not by itself defeat the deduction, and the revenue failed to show that the amount was excessive or unreasonable. Case-Laws Income Tax Tue, 10 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38092