https://www.taxtmi.com/caselaws?id=8918 Notification imposing gratuity liability crystallises employer liability from its operative date; past service must be included to compute the quantum of that liability, but such inclusion does not render any gratuity payable in earlier years. The liability is deductible in the computation of gross profit itself rather than under a provision permitting deduction for contributions to a gratuity trust. Contingencies such as dismissal for serious misconduct do not convert the entire liability into a contingent obligation because actuarial valuation must account for such contingencies when determining the discounted present value of the liability. en-us Fri, 04 Aug 1972 00:00:00 +0530 Mon, 19 Jan 2026 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8918 Notification imposing gratuity liability crystallises employer liability from its operative date; past service must be included to compute the quantum of that liability, but such inclusion does not render any gratuity payable in earlier years. The liability is deductible in the computation of gross profit itself rather than under a provision permitting deduction for contributions to a gratuity trust. Contingencies such as dismissal for serious misconduct do not convert the entire liability into a contingent obligation because actuarial valuation must account for such contingencies when determining the discounted present value of the liability. Case-Laws Income Tax Fri, 04 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8918