https://www.taxtmi.com/caselaws?id=26539 Provision for retirement gratuity was treated as a deductible business liability under section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955, because that provision was held to be substantially in pari materia with section 37(1) of the Income-tax Act, 1961. The Court's reasoning was that a legitimate liability relatable to the accounting year, including gratuity valued on actuarial principles, can be allowed as an expenditure. In the absence of a statutory restriction equivalent to section 40A(7), the existence of a gratuity trust was not decisive, and the allowance could not be revised as a mistake apparent from the record under section 36. en-us Fri, 21 Mar 1986 00:00:00 +0530 Fri, 05 Feb 2010 16:32:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26539 Provision for retirement gratuity was treated as a deductible business liability under section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955, because that provision was held to be substantially in pari materia with section 37(1) of the Income-tax Act, 1961. The Court's reasoning was that a legitimate liability relatable to the accounting year, including gratuity valued on actuarial principles, can be allowed as an expenditure. In the absence of a statutory restriction equivalent to section 40A(7), the existence of a gratuity trust was not decisive, and the allowance could not be revised as a mistake apparent from the record under section 36. Case-Laws Income Tax Fri, 21 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26539