https://www.taxtmi.com/caselaws?id=68949 The Tribunal upheld the disallowance of the gratuity provision claimed by the assessee-company under section 40A(7) of the Income-tax Act, 1961. The absence of an approved fund resulted in the denial of the deduction, emphasizing the distinction between liability and expenditure for tax purposes. Despite arguments based on accounting principles and legal precedents, the Tribunal ruled that the failure to comply with statutory requirements precluded the allowance of the deduction. The cross objection filed by the assessee was dismissed, affirming the disallowance of the gratuity provision. en-us Tue, 12 Jun 1979 00:00:00 +0530 Mon, 04 Apr 2011 11:48:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68949 The Tribunal upheld the disallowance of the gratuity provision claimed by the assessee-company under section 40A(7) of the Income-tax Act, 1961. The absence of an approved fund resulted in the denial of the deduction, emphasizing the distinction between liability and expenditure for tax purposes. Despite arguments based on accounting principles and legal precedents, the Tribunal ruled that the failure to comply with statutory requirements precluded the allowance of the deduction. The cross objection filed by the assessee was dismissed, affirming the disallowance of the gratuity provision. Case-Laws Income Tax Tue, 12 Jun 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68949