https://www.taxtmi.com/caselaws?id=20841 Section 40A(7) allowed deduction of the contribution to a recognised gratuity fund where the liability was computed on actuarial basis within the statutory and fund-rule limits; exclusion of employees with less than five years' service was not justified on the facts. Ex gratia payment was deductible as customary bonus under section 36(1)(ii) because the assessee showed a long-standing, uniform practice, payment in loss years, and a settled industrial basis supporting reasonableness. However, the same payment could not alternatively be claimed under section 37(1), as the residuary provision cannot be used where a specific deduction provision applies. en-us Wed, 03 Feb 1993 00:00:00 +0530 Tue, 17 Nov 2009 15:26:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20841 Section 40A(7) allowed deduction of the contribution to a recognised gratuity fund where the liability was computed on actuarial basis within the statutory and fund-rule limits; exclusion of employees with less than five years' service was not justified on the facts. Ex gratia payment was deductible as customary bonus under section 36(1)(ii) because the assessee showed a long-standing, uniform practice, payment in loss years, and a settled industrial basis supporting reasonableness. However, the same payment could not alternatively be claimed under section 37(1), as the residuary provision cannot be used where a specific deduction provision applies. Case-Laws Income Tax Wed, 03 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20841