Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
The High Court ruled that mere reflection of an entry in the balance sheet liability column cannot constitute an 'agreement' for payment of gratuity u/s 4(5) of the Payment of Gratuity Act. An underlying document or contract between the parties explicitly agreeing to pay gratuity is necessary. In the absence of such an agreement or contract, the stray entry made by the petitioners themselves in the company's balance sheet, days before selling their stake, cannot create a liability for gratuity payment. The petitioners' names were not included in the LIC gratuity insurance policy, and no evidence suggested previous directors received gratuity. Therefore, the petitioners' claim for gratuity amounting to Rs. 1.21 crores was untenable and rightly rejected by the authorities.
The High Court ruled that mere reflection of an entry in the balance sheet liability column cannot constitute an 'agreement' for payment of gratuity u/s 4(5) of the Payment of Gratuity Act. An underlying document or contract between the parties explicitly agreeing to pay gratuity is necessary. In the absence of such an agreement or contract, the stray entry made by the petitioners themselves in the company's balance sheet, days before selling their stake, cannot create a liability for gratuity payment. The petitioners' names were not included in the LIC gratuity insurance policy, and no evidence suggested previous directors received gratuity. Therefore, the petitioners' claim for gratuity amounting to Rs. 1.21 crores was untenable and rightly rejected by the authorities.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
