https://www.taxtmi.com/caselaws?id=16850 Rule 106 of the Income-tax Rules, 1962, read with rule 7 of Part C of the Fourth Schedule to the Income-tax Act, 1961, treats money drawn from a gratuity fund as not becoming the employer's income merely because it is drawn, adjusted, or repaid. Only contributions repaid to the employer in the circumstances contemplated by the rule can take the character of income in the relevant previous year. An amount initially obtained as a loan does not become income simply on repayment or adjustment against gratuity liability. On that basis, the assessee was entitled to the deduction, and the issue was decided against the Revenue. en-us Mon, 11 Mar 1996 00:00:00 +0530 Sat, 12 Sep 2009 15:52:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16850 Rule 106 of the Income-tax Rules, 1962, read with rule 7 of Part C of the Fourth Schedule to the Income-tax Act, 1961, treats money drawn from a gratuity fund as not becoming the employer's income merely because it is drawn, adjusted, or repaid. Only contributions repaid to the employer in the circumstances contemplated by the rule can take the character of income in the relevant previous year. An amount initially obtained as a loan does not become income simply on repayment or adjustment against gratuity liability. On that basis, the assessee was entitled to the deduction, and the issue was decided against the Revenue. Case-Laws Income Tax Mon, 11 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16850