Gratuity provision deduction upheld where prior authority governed and Revenue showed no distinguishing facts.

Deduction for provision towards gratuity payable to employees was accepted as allowable, as the Tribunal correctly affirmed the Appellate Assistant Commissioner's allowance of the assessee's claim. The Court held that the governing position had already been correctly stated in an earlier decision and no distinguishing feature was shown by the Revenue. The deduction claim for gratuity liability was therefore upheld in favour of the assessee for the relevant assessment year.

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Issues: Whether the assessee was entitled to deduction for provision made towards gratuity payable to employees for the assessment year 1972-73.

Analysis: The Tribunal had affirmed the allowance of the assessee's claim by the Appellate Assistant Commissioner. The Court found that the Tribunal was right in doing so and noted that the governing position had been correctly stated in an earlier decision, with no distinguishing feature shown on behalf of the Revenue.

Conclusion: The deduction claim for gratuity liability was upheld in favour of the assessee.

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