https://www.taxtmi.com/caselaws?id=12847 A gratuity provision is deductible only when the liability has actually become payable during the relevant previous year; where termination of employment and closure occur after the accounting year, no accrued liability arises under the mercantile system. On the facts stated, the workmen remained in service until the notice period expired, so the gratuity claim did not qualify for deduction in that year. Foreign tour expenditure is allowable only if it is wholly and exclusively for business purposes; because the required nexus and supporting particulars of the overseas trip were not established, the expense was not deductible. en-us Thu, 05 Jul 2001 00:00:00 +0530 Fri, 22 May 2009 15:09:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12847 A gratuity provision is deductible only when the liability has actually become payable during the relevant previous year; where termination of employment and closure occur after the accounting year, no accrued liability arises under the mercantile system. On the facts stated, the workmen remained in service until the notice period expired, so the gratuity claim did not qualify for deduction in that year. Foreign tour expenditure is allowable only if it is wholly and exclusively for business purposes; because the required nexus and supporting particulars of the overseas trip were not established, the expense was not deductible. Case-Laws Income Tax Thu, 05 Jul 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12847