2001 (2) TMI 54 - HC - Income Tax

Summary

The High Court of Madras ruled that the deduction for the gratuity fund contribution should be based on the incremental liability for the current year only, not past years. The Tribunal erred in allowing the full amount of Rs.99,000 as deduction. Deduction should be limited to the incremental liability accrued in the previous year relevant to the assessment year. (Case citation: 2001 (2) TMI 54 - MADRAS High Court)