https://www.taxtmi.com/caselaws?id=469824 A gratuity provision made by a charitable trust on actuarial valuation was treated as a crystallized liability, not a contingent claim, and therefore as application of income under section 11 even though payment was made later. The Tribunal noted that income computation for charitable institutions under section 11 proceeds on receipt and application, so the expenditure charged to the income and expenditure account could be regarded as incurred on accrual basis for earlier years. It also read the Finance Act, 2022 amendment to section 11(7) as prospective from assessment year 2023-24, leaving prior years governed by the earlier position. The disallowance was accordingly reversed. en-us Fri, 11 Aug 2023 00:00:00 +0530 Mon, 06 Jul 2026 15:17:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469824 A gratuity provision made by a charitable trust on actuarial valuation was treated as a crystallized liability, not a contingent claim, and therefore as application of income under section 11 even though payment was made later. The Tribunal noted that income computation for charitable institutions under section 11 proceeds on receipt and application, so the expenditure charged to the income and expenditure account could be regarded as incurred on accrual basis for earlier years. It also read the Finance Act, 2022 amendment to section 11(7) as prospective from assessment year 2023-24, leaving prior years governed by the earlier position. The disallowance was accordingly reversed. Case-Laws Income Tax Fri, 11 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469824