https://www.taxtmi.com/caselaws?id=27116 The High Court held that a provision for gratuity must be based on actuarial valuation to accurately determine the present discounted value of the liability. The Court emphasized that the assessee, not the assessing officer, should make such a provision. The Court ruled against the assessee, highlighting the necessity of a scientifically calculated provision for gratuity for it to be allowable as a deduction. The Court directed the Tribunal to reassess the provision for gratuity to ensure it was based on genuine actuarial valuation, denying the claim if not. Ultimately, the Court emphasized the need for a valid provision for gratuity based on actuarial principles for it to be considered deductible. en-us Mon, 17 Jan 1983 00:00:00 +0530 Wed, 10 Feb 2010 17:52:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27116 The High Court held that a provision for gratuity must be based on actuarial valuation to accurately determine the present discounted value of the liability. The Court emphasized that the assessee, not the assessing officer, should make such a provision. The Court ruled against the assessee, highlighting the necessity of a scientifically calculated provision for gratuity for it to be allowable as a deduction. The Court directed the Tribunal to reassess the provision for gratuity to ensure it was based on genuine actuarial valuation, denying the claim if not. Ultimately, the Court emphasized the need for a valid provision for gratuity based on actuarial principles for it to be considered deductible. Case-Laws Income Tax Mon, 17 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27116