https://www.taxtmi.com/caselaws?id=39568 Liability for gratuity may be recognised in the relevant accounting period by valuing the contingent liability or creating a fund, and such recognition is permissible for ascertaining true profits and gains; the nature of the obligation is a gratuity liability even though actual payment arises on events like retirement, and accepted principles of accountancy and commercial practice permit provisioning notwithstanding that sums are not yet paid into a specific fund. Consequently, deductibility or profit determination by taking into account gratuity liability relatable to the year of account is allowable, and parties were directed to bear their own costs. en-us Tue, 08 Jul 1975 00:00:00 +0530 Wed, 21 Jan 2026 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39568 Liability for gratuity may be recognised in the relevant accounting period by valuing the contingent liability or creating a fund, and such recognition is permissible for ascertaining true profits and gains; the nature of the obligation is a gratuity liability even though actual payment arises on events like retirement, and accepted principles of accountancy and commercial practice permit provisioning notwithstanding that sums are not yet paid into a specific fund. Consequently, deductibility or profit determination by taking into account gratuity liability relatable to the year of account is allowable, and parties were directed to bear their own costs. Case-Laws Income Tax Tue, 08 Jul 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39568