https://www.taxtmi.com/caselaws?id=27868 A statutory gratuity liability that accrued during the relevant accounting period was deductible under section 37(1) of the Income-tax Act, 1961. The court noted that the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971 created a legal obligation on the employer, and deductibility was not defeated merely because no corresponding provision was made in the books of account. The allowance was also consistent with earlier binding authority on gratuity liability, so the deduction was upheld in favour of the assessee. en-us Mon, 30 Jan 1984 00:00:00 +0530 Tue, 16 Feb 2010 15:20:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27868 A statutory gratuity liability that accrued during the relevant accounting period was deductible under section 37(1) of the Income-tax Act, 1961. The court noted that the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971 created a legal obligation on the employer, and deductibility was not defeated merely because no corresponding provision was made in the books of account. The allowance was also consistent with earlier binding authority on gratuity liability, so the deduction was upheld in favour of the assessee. Case-Laws Income Tax Mon, 30 Jan 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27868