https://www.taxtmi.com/caselaws?id=38525 Under the mercantile system, gratuity liability is deductible only in the accounting year in which it accrues, and it cannot be shifted to a later assessment year merely because the claim is raised later. The Kerala High Court held that gratuity arrears arising under the earlier Ordinance remained governed by the year of accrual; the repeal and saving provision in the later Act did not override the general saving rule, and the assessee was therefore not entitled to deduct the earlier-years gratuity liability in assessment year 1971-72. en-us Wed, 10 Dec 1975 00:00:00 +0530 Wed, 07 Apr 2010 10:46:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38525 Under the mercantile system, gratuity liability is deductible only in the accounting year in which it accrues, and it cannot be shifted to a later assessment year merely because the claim is raised later. The Kerala High Court held that gratuity arrears arising under the earlier Ordinance remained governed by the year of accrual; the repeal and saving provision in the later Act did not override the general saving rule, and the assessee was therefore not entitled to deduct the earlier-years gratuity liability in assessment year 1971-72. Case-Laws Income Tax Wed, 10 Dec 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38525