https://www.taxtmi.com/caselaws?id=27224 Statutory gratuity liability under the mercantile system is deductible in computing business income only for the assessment year in which the obligation first accrues and is properly quantified. A provision for gratuity may therefore be allowed for the relevant year under the applicable deduction framework. Liability attributable to earlier periods cannot be shifted or claimed in a later assessment year merely because payment or employee qualification is considered later. Consequently, an allowed gratuity deduction cannot be treated as erroneous solely on the basis that an earlier-period component was not separately deductible in the later year, and reconsideration of such earlier-year claims is unwarranted. en-us Fri, 06 Jul 1984 00:00:00 +0530 Thu, 11 Feb 2010 15:55:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27224 Statutory gratuity liability under the mercantile system is deductible in computing business income only for the assessment year in which the obligation first accrues and is properly quantified. A provision for gratuity may therefore be allowed for the relevant year under the applicable deduction framework. Liability attributable to earlier periods cannot be shifted or claimed in a later assessment year merely because payment or employee qualification is considered later. Consequently, an allowed gratuity deduction cannot be treated as erroneous solely on the basis that an earlier-period component was not separately deductible in the later year, and reconsideration of such earlier-year claims is unwarranted. Case-Laws Income Tax Fri, 06 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27224