https://www.taxtmi.com/caselaws?id=19001 The High Court of Madras ruled in favor of the assessee, upholding the Tribunal's decision to allow deductions for gratuity provisions related to earlier years and incremental liabilities under the Income-tax Act. The court emphasized the necessity of approved gratuity funds for deductions under section 36(1)(v) and clarified the treatment of gratuity payments under the mercantile system of accounting. Compliance with the legal requirements for deductions, including creating an irrevocable trust for gratuity funds, was deemed essential. The court found no error in the Tribunal's application of the law and emphasized the importance of adhering to Income-tax Act provisions for gratuity deductions. en-us Mon, 06 Mar 1995 00:00:00 +0530 Tue, 03 Nov 2009 12:52:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19001 The High Court of Madras ruled in favor of the assessee, upholding the Tribunal's decision to allow deductions for gratuity provisions related to earlier years and incremental liabilities under the Income-tax Act. The court emphasized the necessity of approved gratuity funds for deductions under section 36(1)(v) and clarified the treatment of gratuity payments under the mercantile system of accounting. Compliance with the legal requirements for deductions, including creating an irrevocable trust for gratuity funds, was deemed essential. The court found no error in the Tribunal's application of the law and emphasized the importance of adhering to Income-tax Act provisions for gratuity deductions. Case-Laws Income Tax Mon, 06 Mar 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19001