Approved gratuity fund provisions remain deductible despite general actual-payment requirements, preventing revision of the allowed gratuity deduction...
Provision for contributions to an approved gratuity fund is...
Approved gratuity fund provisions remain deductible despite general actual-payment requirements, preventing revision of the allowed gratuity deduction.
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Provision for contributions to an approved gratuity fund is deductible under the specific exception in section 40A(7)(b), notwithstanding the general actual-payment requirement in section 43B. The provisions are reconciled because section 43B does not specifically address approved gratuity funds. On that basis, the gratuity-deduction claim was allowable. The Tribunal's conclusion that revision under section 263 could not be invoked for the deduction was sustained, and the appeal was dismissed with the substantial questions answered for the assessee.
Provision for contributions to an approved gratuity fund is deductible under the specific exception in section 40A(7)(b), notwithstanding the general actual-payment requirement in section 43B. The provisions are reconciled because section 43B does not specifically address approved gratuity funds. On that basis, the gratuity-deduction claim was allowable. The Tribunal's conclusion that revision under section 263 could not be invoked for the deduction was sustained, and the appeal was dismissed with the substantial questions answered for the assessee.
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