1991 (6) TMI 57 - HC - Income Tax

Summary

The High Court of Orissa ruled that the payment of gratuity and compensation to workers by an assessee on closure of business is not deductible as a business expense under section 37(1) of the Income-tax Act, 1961. The court referred to relevant case law and advised the assessee to challenge the finding that the business had stopped. The judgment was delivered by Judges B. L. Hansaria and D. M. Patnaik.