https://www.taxtmi.com/caselaws?id=21632 A gratuity provision based on scientific or actuarial valuation is treated as an existing liability, not a reserve, when computing the break-up value of shares for wealth-tax purposes. The court applied the earlier principle that a properly valued gratuity provision reflects the discounted present value of the assessee's future obligation and is therefore deductible. The issue was answered in favour of treating the provision as a liability and against the Revenue. en-us Tue, 04 Dec 1990 00:00:00 +0530 Thu, 26 Nov 2009 11:48:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21632 A gratuity provision based on scientific or actuarial valuation is treated as an existing liability, not a reserve, when computing the break-up value of shares for wealth-tax purposes. The court applied the earlier principle that a properly valued gratuity provision reflects the discounted present value of the assessee's future obligation and is therefore deductible. The issue was answered in favour of treating the provision as a liability and against the Revenue. Case-Laws Wealth-tax Tue, 04 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21632