https://www.taxtmi.com/caselaws?id=17123 The High Court of Kerala ruled in a wealth-tax case regarding the admissibility of gratuity liability as a deduction for valuing shares. The court held that gratuity liability shown in the balance-sheet is an admissible deduction under rule 1D of the Wealth-tax Rules. It emphasized that an existing and ascertained liability can be considered for deduction, distinguishing between provisions and reserves. The court sided with the assessee, rejecting the Revenue's argument based on statutory provisions. The court directed the Income-tax Appellate Tribunal to act accordingly, settling the matter in favor of the assessee. en-us Wed, 07 Aug 1996 00:00:00 +0530 Tue, 15 Sep 2009 13:12:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17123 The High Court of Kerala ruled in a wealth-tax case regarding the admissibility of gratuity liability as a deduction for valuing shares. The court held that gratuity liability shown in the balance-sheet is an admissible deduction under rule 1D of the Wealth-tax Rules. It emphasized that an existing and ascertained liability can be considered for deduction, distinguishing between provisions and reserves. The court sided with the assessee, rejecting the Revenue's argument based on statutory provisions. The court directed the Income-tax Appellate Tribunal to act accordingly, settling the matter in favor of the assessee. Case-Laws Wealth-tax Wed, 07 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17123