https://www.taxtmi.com/caselaws?id=786008 Treatment of gratuity expense where employer transfers the gratuity liability to a related concern: the transfer of the obligation by journal entry was treated as discharge of the employer's liability arising from services rendered, and accordingly the gratuity amount was claimed as an allowable expenditure under the tax provisions referenced. The analysis contrasts actual payment to an employee with transfer of liability to another entity, concluding that transferring the obligation to a related concern extinguishes the transferring employer's payment obligation and permits deduction for the transferred gratuity amount. en-us Wed, 21 Jan 2026 00:00:00 +0530 Wed, 04 Feb 2026 08:24:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786008 Treatment of gratuity expense where employer transfers the gratuity liability to a related concern: the transfer of the obligation by journal entry was treated as discharge of the employer's liability arising from services rendered, and accordingly the gratuity amount was claimed as an allowable expenditure under the tax provisions referenced. The analysis contrasts actual payment to an employee with transfer of liability to another entity, concluding that transferring the obligation to a related concern extinguishes the transferring employer's payment obligation and permits deduction for the transferred gratuity amount. Case-Laws Income Tax Wed, 21 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786008