Ex-Gratia Payment to prematurely retiring despite absence of Scheme allowable

DCIT Vs Prathamik Shikshak Sahakari Bank Ltd. (ITAT Pune) Brief facts relating to the issue are that the Assessing Officer was of the view that in the absence of any scheme formulated by the assessee bank, the amount paid as ex-gratia to prematurely retiring employees was not to be allowed as deduction. The case of assessee on the other hand, was that the said payment was made in recognition of long term and meritorious services of the employees. The assessee had claimed the said expenditure as ex-gratia payment as in the nature of profits and in lieu of salary, and on the same, TDS was also d...