https://www.taxtmi.com/caselaws?id=70141 A gratuity provision is deductible as business expenditure where the liability arises during the accounting year and is a present, definite obligation capable of actuarial valuation. The fact that the valuation partly reflects past service does not make the claim contingent if the gratuity scheme came into force in that year. A provision for such an ascertained liability is an allowable deduction in computing business income, and the decision distinguishing contingent retrenchment compensation on business transfer was not applied to this gratuity obligation. en-us Fri, 31 Dec 1976 00:00:00 +0530 Thu, 14 Apr 2011 15:36:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70141 A gratuity provision is deductible as business expenditure where the liability arises during the accounting year and is a present, definite obligation capable of actuarial valuation. The fact that the valuation partly reflects past service does not make the claim contingent if the gratuity scheme came into force in that year. A provision for such an ascertained liability is an allowable deduction in computing business income, and the decision distinguishing contingent retrenchment compensation on business transfer was not applied to this gratuity obligation. Case-Laws Income Tax Fri, 31 Dec 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70141