https://www.taxtmi.com/caselaws?id=35899 A gratuity provision is deductible under section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955 only if it represents expenditure incurred in the relevant previous year and a scientifically ascertained liability laid out wholly and exclusively for the land. Where the assessee did not debit the claim in that year, did not obtain an actuarial valuation, and did not create a proper reserve reflecting a quantified liability, the provision was treated as a mere guess-based estimate and was not allowable. The mercantile system alone did not make an unascertained gratuity liability deductible, although actual payment made in the year could still qualify. en-us Thu, 02 Aug 1979 00:00:00 +0530 Wed, 17 Mar 2010 17:01:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35899 A gratuity provision is deductible under section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955 only if it represents expenditure incurred in the relevant previous year and a scientifically ascertained liability laid out wholly and exclusively for the land. Where the assessee did not debit the claim in that year, did not obtain an actuarial valuation, and did not create a proper reserve reflecting a quantified liability, the provision was treated as a mere guess-based estimate and was not allowable. The mercantile system alone did not make an unascertained gratuity liability deductible, although actual payment made in the year could still qualify. Case-Laws Income Tax Thu, 02 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35899