https://www.taxtmi.com/caselaws?id=56935 Premium paid to LIC for insurance cover against liabilities under the Payment of Gratuity Act, 1972 was treated as an actual business outgo, not a mere provision for gratuity. Section 40A(7) disallows provisions for gratuity, but its bar does not extend to actual payments covered by the statutory exception in section 40A(7)(b)(i). On that basis, the premium was held allowable as business expenditure under section 37(1), and the disallowance was unsustainable. en-us Wed, 17 Jun 1992 00:00:00 +0530 Tue, 07 Dec 2010 14:02:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56935 Premium paid to LIC for insurance cover against liabilities under the Payment of Gratuity Act, 1972 was treated as an actual business outgo, not a mere provision for gratuity. Section 40A(7) disallows provisions for gratuity, but its bar does not extend to actual payments covered by the statutory exception in section 40A(7)(b)(i). On that basis, the premium was held allowable as business expenditure under section 37(1), and the disallowance was unsustainable. Case-Laws Income Tax Wed, 17 Jun 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56935