1975 (8) TMI 52

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....atuity. The figure appears to be the sum representing the gratuity provided for the workers under the Kerala Industrial Employees Payment of Gratuity Act, 1970, for one year of service only. The assessee claimed that it was allowable and the claim was rejected by the ITO but was allowed by the AAC. 2. The main contention of the Department is that the firm itself was constituted only in the prio....

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....(1)(b) will arise only after five years of service, it is reasonable to expect that most of them will continue in service for five years and on that basis make provision for gratuity which will have to be paid at the time of their retirement, resignation, retrenchment, discharge or dismissal. The liability imposed by the Act therefore can generally be said to be a liability incurred from year to y....