https://www.taxtmi.com/caselaws?id=38936 Gratuity paid to employees under an existing business scheme was treated as revenue expenditure because it was incurred in the course of business and supported by commercial expediency. The payments were made to the assessee's own employees after a business merger, and the Tribunal found that retiring employees above the specified age helped retain the remaining staff and maintain workplace contentment. The expenditure was therefore not treated as part of the purchase price of any new business. The gratuity deduction was allowed as revenue expenditure, with the question answered in favour of the assessee. en-us Thu, 11 Dec 1975 00:00:00 +0530 Sat, 10 Apr 2010 14:02:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38936 Gratuity paid to employees under an existing business scheme was treated as revenue expenditure because it was incurred in the course of business and supported by commercial expediency. The payments were made to the assessee's own employees after a business merger, and the Tribunal found that retiring employees above the specified age helped retain the remaining staff and maintain workplace contentment. The expenditure was therefore not treated as part of the purchase price of any new business. The gratuity deduction was allowed as revenue expenditure, with the question answered in favour of the assessee. Case-Laws Income Tax Thu, 11 Dec 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38936