https://www.taxtmi.com/caselaws?id=19747 A provision for gratuity is disallowable under section 40A(7)(a) unless it falls within the exception for a provision made towards an approved gratuity fund under section 40A(7)(b)(i). That exception applies only where an approved gratuity fund exists during the relevant accounting year, as required by section 2(5) and the applicable Fourth Schedule rules. Because the fund was approved only with effect from 1 July 1975, after the previous year had ended, no approved fund existed in that year. The deduction was therefore not allowable, and the disallowance was upheld in favour of the Revenue. en-us Tue, 15 Nov 1994 00:00:00 +0530 Mon, 09 Nov 2009 13:52:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19747 A provision for gratuity is disallowable under section 40A(7)(a) unless it falls within the exception for a provision made towards an approved gratuity fund under section 40A(7)(b)(i). That exception applies only where an approved gratuity fund exists during the relevant accounting year, as required by section 2(5) and the applicable Fourth Schedule rules. Because the fund was approved only with effect from 1 July 1975, after the previous year had ended, no approved fund existed in that year. The deduction was therefore not allowable, and the disallowance was upheld in favour of the Revenue. Case-Laws Income Tax Tue, 15 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19747