1985 (11) TMI 33

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... a case stated under section 256(1) 256(1) of the Income-tax Act, 1961. The question referred to us is as follows : "Whether, on the facts and in the circumstances of the case, the cash payment of Rs. 10,000 made byway of gratuity to the director was disallowable in law by reason of the provisions of section 40(a)(v) of the Income-tax Act, 1961, even though such payment was made for commercial exp .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... onsideration of commercial expediency and that it was a payment in cash. The Tribunal took the view that the scope of section 40(a)(v) of the Income-tax Act, 1961, as it stood at the relevant time, did not include any cash payment to the employee. It is from this decision of the Tribunal that the aforesaid question has been referred to us. A plain reading of the question makes it clear that the c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X