https://www.taxtmi.com/caselaws?id=21147 The High Court upheld the disallowance of the gratuity deduction for an assessee company limited by guarantee under section 40A(7) of the Income-tax Act, 1961. The Court ruled that the gratuity payments must strictly adhere to the conditions outlined in the Act, including being paid into an approved gratuity fund for the exclusive benefit of employees under an irrevocable trust. Since the fund was approved after the relevant period, the assessee's claim for deduction was rightly denied. The judgment emphasized the necessity of meeting statutory requirements for gratuity deductions, ruling in favor of the Revenue and awarding costs of Rs. 250. en-us Wed, 29 Jan 1992 00:00:00 +0530 Fri, 20 Nov 2009 13:28:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21147 The High Court upheld the disallowance of the gratuity deduction for an assessee company limited by guarantee under section 40A(7) of the Income-tax Act, 1961. The Court ruled that the gratuity payments must strictly adhere to the conditions outlined in the Act, including being paid into an approved gratuity fund for the exclusive benefit of employees under an irrevocable trust. Since the fund was approved after the relevant period, the assessee's claim for deduction was rightly denied. The judgment emphasized the necessity of meeting statutory requirements for gratuity deductions, ruling in favor of the Revenue and awarding costs of Rs. 250. Case-Laws Income Tax Wed, 29 Jan 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21147