https://www.taxtmi.com/caselaws?id=24792 Section 40A(7)(b)(i) permits gratuity deduction only where an actual provision or appropriation is made during the relevant accounting year for contribution to an approved gratuity fund, or where gratuity has become payable in that year. A mere claim in a revised return, without a corresponding book provision or actual contribution during the year, is insufficient. The article also notes that the absence of a statutory obligation to contribute a fixed annual amount meant the liability did not arise by operation of law, so the principle that omission of a book entry does not defeat an accrued liability was inapplicable. On those facts, the deduction failed. en-us Mon, 27 Jun 1988 00:00:00 +0530 Fri, 22 Jan 2010 13:48:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24792 Section 40A(7)(b)(i) permits gratuity deduction only where an actual provision or appropriation is made during the relevant accounting year for contribution to an approved gratuity fund, or where gratuity has become payable in that year. A mere claim in a revised return, without a corresponding book provision or actual contribution during the year, is insufficient. The article also notes that the absence of a statutory obligation to contribute a fixed annual amount meant the liability did not arise by operation of law, so the principle that omission of a book entry does not defeat an accrued liability was inapplicable. On those facts, the deduction failed. Case-Laws Income Tax Mon, 27 Jun 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24792