https://www.taxtmi.com/caselaws?id=38480 The court allowed the petition, quashing the Income-tax Officer's order and directing a fresh order to be passed in accordance with the law. The petitioner was awarded costs. The court held that the claim for gratuity liability based on actuarial valuation under the mercantile system of accounting was allowable, rejecting the Officer's reliance on departmental instructions and the absence of an actuarial report as reasons for disallowance. The court found the Officer's disallowance of the claim for set-off of unabsorbed depreciation and development rebate erroneous, considering the allowance of the gratuity claim would result in a loss return and full refund of advance tax. The court also determined that the amended section 40A did not pose a legal barrier in this case. en-us Fri, 14 Nov 1975 00:00:00 +0530 Tue, 06 Apr 2010 15:15:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38480 The court allowed the petition, quashing the Income-tax Officer's order and directing a fresh order to be passed in accordance with the law. The petitioner was awarded costs. The court held that the claim for gratuity liability based on actuarial valuation under the mercantile system of accounting was allowable, rejecting the Officer's reliance on departmental instructions and the absence of an actuarial report as reasons for disallowance. The court found the Officer's disallowance of the claim for set-off of unabsorbed depreciation and development rebate erroneous, considering the allowance of the gratuity claim would result in a loss return and full refund of advance tax. The court also determined that the amended section 40A did not pose a legal barrier in this case. Case-Laws Income Tax Fri, 14 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38480