https://www.taxtmi.com/caselaws?id=28911 The High Court of Madras ruled that the provision made for gratuity liability, based on actuarial valuation and incremental value, should be allowed as a deduction in the computation of business income. The court clarified that Section 37(1) of the Income Tax Act is a residuary provision for business expenditure and a provision for gratuity is not an expenditure strictly so called. The court emphasized that the deduction for provision for gratuity should be made based on commercial principles of accounting. The court ruled in favor of the respective assesses, allowing the deduction for the provision made towards gratuity liability for the assessment year 1972-73. en-us Mon, 06 Dec 1982 00:00:00 +0530 Mon, 08 Mar 2010 15:42:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28911 The High Court of Madras ruled that the provision made for gratuity liability, based on actuarial valuation and incremental value, should be allowed as a deduction in the computation of business income. The court clarified that Section 37(1) of the Income Tax Act is a residuary provision for business expenditure and a provision for gratuity is not an expenditure strictly so called. The court emphasized that the deduction for provision for gratuity should be made based on commercial principles of accounting. The court ruled in favor of the respective assesses, allowing the deduction for the provision made towards gratuity liability for the assessment year 1972-73. Case-Laws Income Tax Mon, 06 Dec 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28911