https://www.taxtmi.com/caselaws?id=69110 Gratuity liability that became presently payable on transfer of part of a business was deductible where the seller accepted a reduction in sale consideration for the ascertained liability. Section 40A(7) governed the claim and had overriding effect for gratuity deductions, so the amount was not allowable under section 37(1). The facts did not require the actuarial valuation and approved fund conditions under section 40A(7)(b)(ii); instead, the liability fell within section 40A(7)(b)(i) as a provision for gratuity that had become payable during the previous year. The deduction was therefore allowed in favour of the assessee. en-us Fri, 29 Aug 1986 00:00:00 +0530 Tue, 05 Apr 2011 12:21:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69110 Gratuity liability that became presently payable on transfer of part of a business was deductible where the seller accepted a reduction in sale consideration for the ascertained liability. Section 40A(7) governed the claim and had overriding effect for gratuity deductions, so the amount was not allowable under section 37(1). The facts did not require the actuarial valuation and approved fund conditions under section 40A(7)(b)(ii); instead, the liability fell within section 40A(7)(b)(i) as a provision for gratuity that had become payable during the previous year. The deduction was therefore allowed in favour of the assessee. Case-Laws Income Tax Fri, 29 Aug 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69110