https://www.taxtmi.com/caselaws?id=25003 A provision for employees' gratuity computed on actuarial valuation was held allowable as a deduction where a new statutory liability arose during the relevant accounting year under the West Bengal Employees' (Payment of Compulsory Gratuity) Act, 1971. The Court applied the reasoning in Eastern Spinning Mills Ltd. and treated the gratuity provision as a deductible business expense because it reflected a legally enforceable liability, rather than a contingent reserve. en-us Mon, 25 Jan 1988 00:00:00 +0530 Sat, 23 Jan 2010 17:18:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25003 A provision for employees' gratuity computed on actuarial valuation was held allowable as a deduction where a new statutory liability arose during the relevant accounting year under the West Bengal Employees' (Payment of Compulsory Gratuity) Act, 1971. The Court applied the reasoning in Eastern Spinning Mills Ltd. and treated the gratuity provision as a deductible business expense because it reflected a legally enforceable liability, rather than a contingent reserve. Case-Laws Income Tax Mon, 25 Jan 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25003