https://www.taxtmi.com/caselaws?id=17034 The Court held that the rectification under Section 154 was not justified as the provisions of Section 40A(7) did not apply to actual payments made towards gratuity liability. It noted the debatable nature of the issue due to conflicting views. Regarding the gratuity amount, the Court ruled in favor of the assessee, stating that the gratuity liability transferred during the business transfer constituted actual payment, making the deduction allowable. The Court answered negatively on the rectification issue and affirmatively on the gratuity amount's deductibility. en-us Thu, 06 Feb 1997 00:00:00 +0530 Mon, 14 Sep 2009 16:54:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17034 The Court held that the rectification under Section 154 was not justified as the provisions of Section 40A(7) did not apply to actual payments made towards gratuity liability. It noted the debatable nature of the issue due to conflicting views. Regarding the gratuity amount, the Court ruled in favor of the assessee, stating that the gratuity liability transferred during the business transfer constituted actual payment, making the deduction allowable. The Court answered negatively on the rectification issue and affirmatively on the gratuity amount's deductibility. Case-Laws Income Tax Thu, 06 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17034