https://www.taxtmi.com/caselaws?id=36090 A provision for gratuity was not deductible under section 37 of the Income-tax Act, 1961 because gratuity claims are controlled by the overriding disallowance scheme in section 40A. The statutory liability under the Payment of Gratuity Act, 1972 did not by itself create an unrestricted income-tax deduction. Section 40A(7) barred deduction for a gratuity provision unless the assessee satisfied the specified exceptions and conditions, including the approved fund and actuarial funding requirements. Those conditions were not met, so the disallowance was upheld and the gratuity provision remained non-deductible. en-us Mon, 04 Aug 1980 00:00:00 +0530 Fri, 19 Mar 2010 12:38:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36090 A provision for gratuity was not deductible under section 37 of the Income-tax Act, 1961 because gratuity claims are controlled by the overriding disallowance scheme in section 40A. The statutory liability under the Payment of Gratuity Act, 1972 did not by itself create an unrestricted income-tax deduction. Section 40A(7) barred deduction for a gratuity provision unless the assessee satisfied the specified exceptions and conditions, including the approved fund and actuarial funding requirements. Those conditions were not met, so the disallowance was upheld and the gratuity provision remained non-deductible. Case-Laws Income Tax Mon, 04 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36090