https://www.taxtmi.com/caselaws?id=69933 Actuarial provision for gratuity was deductible where it was made for the relevant previous year, reflected ascertainable liability, did not exceed the admissible amount, and an approved gratuity fund had been created with the required contribution conditions satisfied. Section 40A(7) generally disallows gratuity provisions, but preserves qualifying provisions, and Explanation 2 makes such deduction available in the year of provision without waiting for actual payment. The distinction between initial liability and incremental liability was treated as irrelevant after section 40A(7), so the departmental restriction on deduction failed. en-us Fri, 10 Apr 1981 00:00:00 +0530 Wed, 13 Apr 2011 10:09:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69933 Actuarial provision for gratuity was deductible where it was made for the relevant previous year, reflected ascertainable liability, did not exceed the admissible amount, and an approved gratuity fund had been created with the required contribution conditions satisfied. Section 40A(7) generally disallows gratuity provisions, but preserves qualifying provisions, and Explanation 2 makes such deduction available in the year of provision without waiting for actual payment. The distinction between initial liability and incremental liability was treated as irrelevant after section 40A(7), so the departmental restriction on deduction failed. Case-Laws Income Tax Fri, 10 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69933