1998 (8) TMI 32

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....ion referred to us at the instance of the Revenue is as to whether the Tribunal was right in holding that the assessee's claim for deduction of a total sum of Rs.61,228 on account of gratuity to the employees for the assessment year 1974-75 was acceptable. We have been taken through the order of the Tribunal. The Tribunal has proceeded on a misconception that the actuarial valuation on the basi....

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....for the earlier assessment year as a liability based on the actuarial valuation. The finding of the Tribunal is flawed. It is not in dispute that the assessee maintained its accounts on the mercantile system. The liability for gratuity is calculated on the basis of an actuarial valuation, which takes into account the total number of employees entitled to receive gratuity, and the incremental li....