2002 (7) TMI 26

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....tax Act, 1961, the Tribunal has referred the following question: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 25,875 paid as gratuity to Shri G.P. Periwal, former sales manager of the assessee, was not admissible as business expenditure?" During the course of assessment, the Assessing Officer noticed that the assessee has ....

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.... (xxiii) reads as under: "To grant pensions, allowances, gratuities and bonuses to employees or ex-employees of the company or its predecessors in business or the dependents of such persons and to support or subscribe to any charitable or other institution, clubs, societies or funds." It is true that there is a provision in the memorandum and articles of association of the Rajasthan Central ....

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....y was payable in accordance with the terms and conditions of service of Shri G.P. Periwal. It has also not been brought on record on behalf of the assessee that this gratuity was payable under any statute. The contention has been that the gratuity has been paid as a matter of commercial expediency because of meritorious and vast experience of Mr. Periwal. We have already said earlier that the empl....