Gratuity provision deduction upheld in business income computation; Revenue challenge failed under earlier Supreme Court authority.

Provision made for gratuity was treated as an admissible deduction in computing business income for the assessment year 1972-73. The claim had been disallowed by the tax authorities, but the Tribunal accepted it, and the Revenue's challenge failed because the issue was covered by an earlier SC decision. The deduction was therefore upheld as allowable.

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Issues: Whether the provision made for gratuity was admissible as a deduction in computing business income for the assessment year 1972-73.

Analysis: The claim for deduction had been disallowed by the Income-tax Officer and the Appellate Assistant Commissioner, but the Tribunal accepted the respondent's claim. The challenge by the Revenue was found to be without substance, the issue being covered by an earlier decision of the Supreme Court.

Conclusion: The deduction was held admissible, and the Revenue's challenge failed.

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