1985 (6) TMI 13

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.... to income-tax for the assessment year 1971-72, the corresponding accounting year ending on October 29, 1970. In its return, the assessee sought to provide for a sum of Rs. 80,000 on account of gratuity. The Income-tax Officer disallowed the claim for deduction of the said amount on the ground that it was only a contingent liability. On appeal, the Appellate Assistant Commissioner upheld the decis....

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....ry liability of the assessee to make any provision for gratuity in the year involved. On this ground, the decision of the Income-tax Officer and the Appellate Assistant Commissioner was sought to be justified before the Tribunal. The Tribunal has not specifically dealt with this contention. Where the liability on account of gratuity is statutory, a provision for the same can be claimed and allowed....