https://www.taxtmi.com/caselaws?id=27605 Actuarially determined incremental gratuity liability constitutes an accrued and ascertainable business liability rather than a contingent liability, making the provision deductible for the relevant accounting year. Payment to a transferee for gratuity accrued to employees before a business transfer discharges the transferor's existing employment obligation. Because the liability arose during the transferor's business operations and the payment merely settled that obligation through the transferee, it is revenue expenditure rather than capital outlay and is deductible. 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 Actuarially determined incremental gratuity liability constitutes an accrued and ascertainable business liability rather than a contingent liability, making the provision deductible for the relevant accounting year. Payment to a transferee for gratuity accrued to employees before a business transfer discharges the transferor's existing employment obligation. Because the liability arose during the transferor's business operations and the payment merely settled that obligation through the transferee, it is revenue expenditure rather than capital outlay and is deductible. Case-Laws Income Tax Tue, 30 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27605