https://www.taxtmi.com/caselaws?id=27605 Incremental gratuity liability computed on an actuarial basis is treated as an accrued business liability, not a contingent one, and is allowable as a deduction because it represents an ascertainable charge arising year by year. Amounts paid to a transferee to discharge accrued gratuity liability of transferred employees are also deductible, since the payment settles a pre-existing business obligation incurred during the employees' service and is not capital outlay. The note thus recognises both actuarial gratuity provisioning and settlement of transferred gratuity obligations as revenue deductions. en-us Tue, 30 Aug 1983 00:00:00 +0530 Mon, 15 Feb 2010 10:05:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27605 Incremental gratuity liability computed on an actuarial basis is treated as an accrued business liability, not a contingent one, and is allowable as a deduction because it represents an ascertainable charge arising year by year. Amounts paid to a transferee to discharge accrued gratuity liability of transferred employees are also deductible, since the payment settles a pre-existing business obligation incurred during the employees' service and is not capital outlay. The note thus recognises both actuarial gratuity provisioning and settlement of transferred gratuity obligations as revenue deductions. Case-Laws Income Tax Tue, 30 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27605