1985 (11) TMI 33 - HC - Income Tax

Summary

The High Court of Bombay ruled that a cash payment of Rs. 10,000 made as gratuity to a director was not disallowable under section 40(a)(v) of the Income-tax Act, 1961. The Tribunal found the payment was for commercial expediency and not covered by the relevant tax provision. The court's decision was in favor of the assessee.