The assessee had claimed certain amounts paid to the Labour Welfare Association as allowable under S. 37(1) of the Act. The AO disallowed the claim which was affirmed by Tribunal. On appeal  the  High Court held that the contribution made by the employer to the Death Relief Fund was an allowable business expenditure in terms of S. 37(1)  in so far as the expenditure was incurred wholly and exclusively for the welfare of its employees and was for the purposes of the business. Similar contributions made by the assessee towards labour welfare had been accepted by the Revenue and no distinguishing features had been brought out before the High Court to persuade it to take a different view in the case of this contribution. The amount contributed was deductible. (AY. 1991-92 to 1995-96, 1998-99)