https://www.taxtmi.com/caselaws?id=26903 A provision for gratuity is deductible in computing business profits only when the liability is statutory and the governing enactment is in force for the relevant assessment year. Here, the gratuity statute commenced after the year under review, so no statutory liability existed during that year. The amount set aside was therefore not an allowable deduction for that assessment year and could be considered only in the year in which the statute came into force. en-us Mon, 10 Jun 1985 00:00:00 +0530 Tue, 09 Feb 2010 12:12:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26903 A provision for gratuity is deductible in computing business profits only when the liability is statutory and the governing enactment is in force for the relevant assessment year. Here, the gratuity statute commenced after the year under review, so no statutory liability existed during that year. The amount set aside was therefore not an allowable deduction for that assessment year and could be considered only in the year in which the statute came into force. Case-Laws Income Tax Mon, 10 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26903