https://www.taxtmi.com/caselaws?id=24148 Employer contributions to an approved gratuity fund are deductible under the Income-tax Act when read harmoniously with the statutory gratuity regime. The text states that section 36(1)(v) allows sums paid to an approved gratuity fund, and that gratuity liability, when scientifically or actuarially ascertained, is a proper business charge. It further notes that actual payment towards that liability is allowable in the year of payment, and that rule 103 cannot be read so restrictively as to deny deduction for excess contribution made to meet an existing statutory obligation. On that basis, the disallowance is described as unsustainable and the excess contribution as allowable. en-us Mon, 27 Mar 1989 00:00:00 +0530 Mon, 18 Jan 2010 10:35:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24148 Employer contributions to an approved gratuity fund are deductible under the Income-tax Act when read harmoniously with the statutory gratuity regime. The text states that section 36(1)(v) allows sums paid to an approved gratuity fund, and that gratuity liability, when scientifically or actuarially ascertained, is a proper business charge. It further notes that actual payment towards that liability is allowable in the year of payment, and that rule 103 cannot be read so restrictively as to deny deduction for excess contribution made to meet an existing statutory obligation. On that basis, the disallowance is described as unsustainable and the excess contribution as allowable. Case-Laws Income Tax Mon, 27 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24148