https://www.taxtmi.com/caselaws?id=15539 Under the mercantile system, gratuity liability must be assessed on an actuarial basis, and a deduction is available only for liability actually accrued or properly provided for in the accounts. The Tribunal erred by comparing valuation figures without accounting for the accepted liability carried forward from the earlier year, and there was no material showing that the amount paid during the year represented a separate liability outside the actuarial provision or that any accrued liability had been omitted from the current year valuation. On those facts, the assessee was not entitled to deduct the claimed gratuity amount. en-us Mon, 17 Aug 1998 00:00:00 +0530 Tue, 25 Aug 2009 17:51:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15539 Under the mercantile system, gratuity liability must be assessed on an actuarial basis, and a deduction is available only for liability actually accrued or properly provided for in the accounts. The Tribunal erred by comparing valuation figures without accounting for the accepted liability carried forward from the earlier year, and there was no material showing that the amount paid during the year represented a separate liability outside the actuarial provision or that any accrued liability had been omitted from the current year valuation. On those facts, the assessee was not entitled to deduct the claimed gratuity amount. Case-Laws Income Tax Mon, 17 Aug 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15539