https://www.taxtmi.com/caselaws?id=785788 Assessment of whether provisions for gratuity and leave encashment qualify as application of income under section 11 for a registered charitable trust. The Tribunal reasoned that such provisions are legally mandated, represent liabilities crystallized by the balance sheet date, and are analogous to depreciation as non-cash but necessary accounting entries; therefore applied income includes commercially necessary accrued liabilities incurred in carrying out trust objects. The Tribunal directed the Assessing Officer to allow these provisions as application of income and rejected the Revenues grounds. en-us Tue, 27 Jan 2026 00:00:00 +0530 Sat, 31 Jan 2026 08:55:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785788 Assessment of whether provisions for gratuity and leave encashment qualify as application of income under section 11 for a registered charitable trust. The Tribunal reasoned that such provisions are legally mandated, represent liabilities crystallized by the balance sheet date, and are analogous to depreciation as non-cash but necessary accounting entries; therefore applied income includes commercially necessary accrued liabilities incurred in carrying out trust objects. The Tribunal directed the Assessing Officer to allow these provisions as application of income and rejected the Revenues grounds. Case-Laws Income Tax Tue, 27 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785788