https://www.taxtmi.com/caselaws?id=7975 Gratuity liability created only by agreement was not deductible for the assessment year where it had neither been paid nor debited in the books during the relevant previous year. Applying section 10(2)(x) and section 10(2)(xv) of the Indian Income-tax Act, 1922, together with the regular method of accounting, the Delhi HC held that deduction required an actual outlay or an incurred liability reflected by payment or a corresponding book debit in the year claimed. A merely deferred, unquantified, and unbooked obligation was insufficient, so the deduction was disallowed and the reference was answered against the assessee. en-us Thu, 26 Feb 1970 00:00:00 +0530 Thu, 26 Mar 2009 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7975 Gratuity liability created only by agreement was not deductible for the assessment year where it had neither been paid nor debited in the books during the relevant previous year. Applying section 10(2)(x) and section 10(2)(xv) of the Indian Income-tax Act, 1922, together with the regular method of accounting, the Delhi HC held that deduction required an actual outlay or an incurred liability reflected by payment or a corresponding book debit in the year claimed. A merely deferred, unquantified, and unbooked obligation was insufficient, so the deduction was disallowed and the reference was answered against the assessee. Case-Laws Income Tax Thu, 26 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7975