https://www.taxtmi.com/caselaws?id=25830 The High Court held that the gratuity liability of the assessee in the electricity undertaking taken over by the Rajasthan Government was not an allowable deduction under section 40A(7) of the Income-tax Act, 1961. The Court affirmed the Tribunal's decision, ruling that the case did not meet the conditions for deduction under section 40A(7)(b)(i) as the takeover occurred in a subsequent accounting year. Consequently, the Court answered both issues against the assessee, directing each party to bear their own costs in the reference. en-us Fri, 16 Jan 1987 00:00:00 +0530 Mon, 01 Feb 2010 12:03:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25830 The High Court held that the gratuity liability of the assessee in the electricity undertaking taken over by the Rajasthan Government was not an allowable deduction under section 40A(7) of the Income-tax Act, 1961. The Court affirmed the Tribunal's decision, ruling that the case did not meet the conditions for deduction under section 40A(7)(b)(i) as the takeover occurred in a subsequent accounting year. Consequently, the Court answered both issues against the assessee, directing each party to bear their own costs in the reference. Case-Laws Income Tax Fri, 16 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25830