hey all,
A person who is a friend of a businessman was regularly helping him in his business, though not actual labour. After some years he turns out to be a fraud and the businessman bars him from interfering in his business. But keeping in mind his family and children he wishes to give him some amount as compensation. The trouble is that the person was never on his muster as a full time or even as a part time worker or consultant. The previous accounts have been audited and no payment related to previous years can be shown. Now, the question......
Does anyone have any idea whether the businessman can make such payment to him?? If yes, under what account head? Is it legal?
CAclubindia
