https://www.taxtmi.com/caselaws?id=19095 Gratuity provisions are deductible only when they fall within the statutory exception for an actuarially valued provision backed by an approved gratuity fund under an irrevocable trust, with the prescribed contribution conditions satisfied; a mere reserve or contingent liability remains disallowable. Where employees' right to gratuity has matured on retirement or cessation of service, the liability is treated as accrued and ascertainable, and not as a future contingency. On those principles, the provision relating to employees whose entitlement had crystallised by the end of the relevant year was regarded as deductible in the corresponding assessment year. en-us Wed, 19 Oct 1994 00:00:00 +0530 Wed, 04 Nov 2009 10:19:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19095 Gratuity provisions are deductible only when they fall within the statutory exception for an actuarially valued provision backed by an approved gratuity fund under an irrevocable trust, with the prescribed contribution conditions satisfied; a mere reserve or contingent liability remains disallowable. Where employees' right to gratuity has matured on retirement or cessation of service, the liability is treated as accrued and ascertainable, and not as a future contingency. On those principles, the provision relating to employees whose entitlement had crystallised by the end of the relevant year was regarded as deductible in the corresponding assessment year. Case-Laws Income Tax Wed, 19 Oct 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19095