https://www.taxtmi.com/caselaws?id=29130 The High Court affirmed the Tribunal's decision regarding the deductibility of the provision made for gratuity and recognized it as an admissible business expenditure under section 37 of the Income-tax Act, 1961, for the assessment year 1971-72. The Court ruled in favor of the assessee, holding that the provision for gratuity should be treated as a permissible deduction in computing business profits, based on actuarial valuation, in line with established legal principles. The Department's contention that such provisions must fall under section 36(1)(v) was rejected, with the Court emphasizing that actuarially ascertained gratuity liabilities are to be considered under section 37. en-us Tue, 17 Nov 1981 00:00:00 +0530 Thu, 11 Mar 2010 10:39:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29130 The High Court affirmed the Tribunal's decision regarding the deductibility of the provision made for gratuity and recognized it as an admissible business expenditure under section 37 of the Income-tax Act, 1961, for the assessment year 1971-72. The Court ruled in favor of the assessee, holding that the provision for gratuity should be treated as a permissible deduction in computing business profits, based on actuarial valuation, in line with established legal principles. The Department's contention that such provisions must fall under section 36(1)(v) was rejected, with the Court emphasizing that actuarially ascertained gratuity liabilities are to be considered under section 37. Case-Laws Income Tax Tue, 17 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29130