1978 (4) TMI 88

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....H CHANDRA C.J.--The Tribunal has referred to us the following two questions : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in directing the Appellate Assistant Commissioner to determine the discounted value of the assessee's liability to pay gratuity based on actuarial valuation for the assessment years 1965-66 and 1966-67 and treat the same ....

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....ll), this court held that where an assessee maintains his accounts on the mercantile system, a liability already accrued, though to be discharged at a future date, would be a proper deduction while working out the profits and gains of his business, regard being had to the accepted principles of commercial practice and accountancy. The estimated liability of an assessee for payment of gratuity to i....