https://www.taxtmi.com/caselaws?id=24255 Section 40A(7) disallows deductions for gratuity provisions unless the amount is contributed to an approved gratuity fund or relates to gratuity that has become payable during the previous year. On the facts stated, no approved gratuity fund existed in the relevant period and no gratuity liability had become payable, so a provision for a future contingent liability did not fall within the statutory exceptions. The disallowance of the gratuity provision was therefore upheld in favour of the Revenue. en-us Wed, 01 Feb 1989 00:00:00 +0530 Mon, 18 Jan 2010 17:37:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24255 Section 40A(7) disallows deductions for gratuity provisions unless the amount is contributed to an approved gratuity fund or relates to gratuity that has become payable during the previous year. On the facts stated, no approved gratuity fund existed in the relevant period and no gratuity liability had become payable, so a provision for a future contingent liability did not fall within the statutory exceptions. The disallowance of the gratuity provision was therefore upheld in favour of the Revenue. Case-Laws Income Tax Wed, 01 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24255