https://www.taxtmi.com/caselaws?id=22926 Provision for gratuity shown in the balance-sheet was held to be a contingent liability, not a deductible item, when valuing unquoted equity shares under rule 1D of the Wealth-tax Rules, 1957. The break-up method under rule 1D excludes contingent liabilities, and gratuity payable only on future contingencies such as retirement, resignation, death or disablement does not become a liability in praesenti merely because it is actuarially estimated. Earlier Supreme Court rulings on gratuity and net wealth were treated as controlling, and the insertion of rule 1D did not change that position. The valuation was therefore upheld without allowing deduction for the gratuity provision. en-us Tue, 03 Jul 1990 00:00:00 +0530 Tue, 15 Dec 2009 13:45:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22926 Provision for gratuity shown in the balance-sheet was held to be a contingent liability, not a deductible item, when valuing unquoted equity shares under rule 1D of the Wealth-tax Rules, 1957. The break-up method under rule 1D excludes contingent liabilities, and gratuity payable only on future contingencies such as retirement, resignation, death or disablement does not become a liability in praesenti merely because it is actuarially estimated. Earlier Supreme Court rulings on gratuity and net wealth were treated as controlling, and the insertion of rule 1D did not change that position. The valuation was therefore upheld without allowing deduction for the gratuity provision. Case-Laws Wealth-tax Tue, 03 Jul 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22926