Payment of gratuity premium to LIC is allowable as business expenditure

ACIT Vs Grand Polycoats Company Pvt. Ltd. (ITAT Ahmedabad) ITAT Ahmedabad held that gratuity premium paid to LIC was to be treated as business expenditure and the same is allowable under section 37(1) of the Income Tax Act. Facts- The assessee is engaged in the business of manufacturing of high performance industrial coatings and specialised paints, and the assessee was the only Indian company selected by Indian Space Research Organization (ISRO) to supply special paints to coat for space research and was awarded contract to supply special paints for “Mission Mars”. The case of the assesse...