https://www.taxtmi.com/caselaws?id=25612 The High Court held that the Tribunal incorrectly allowed the deduction claim for gratuity under Section 40A(7)(b)(ii) of the Income-tax Act, 1961. The Court emphasized the requirement for a provision to be made in the relevant accounting year for the liability arising in that year, which was not met in this case. The Court rejected the Tribunal's interpretation of "incremental liability" and ruled against the assessee, in favor of the Revenue. The petition for reference was dismissed, and each party was directed to bear their own costs. en-us Fri, 20 Mar 1987 00:00:00 +0530 Fri, 29 Jan 2010 17:04:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25612 The High Court held that the Tribunal incorrectly allowed the deduction claim for gratuity under Section 40A(7)(b)(ii) of the Income-tax Act, 1961. The Court emphasized the requirement for a provision to be made in the relevant accounting year for the liability arising in that year, which was not met in this case. The Court rejected the Tribunal's interpretation of "incremental liability" and ruled against the assessee, in favor of the Revenue. The petition for reference was dismissed, and each party was directed to bear their own costs. Case-Laws Income Tax Fri, 20 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25612