1992 (10) TMI 39 - HC - Income Tax

Summary

The High Court of Gujarat ruled in favor of the assessee in a case involving deduction of gratuity amount under the Income-tax Act, 1961. The court held that the assessee was entitled to claim the entire amount of Rs. 25,47,829 as a deduction, rejecting the Revenue's argument for a lower deduction based on actuarial liability. The decision was based on a previous case law establishing that the liability to pay gratuity arises only after the Payment of Gratuity Act comes into force. The court disposed of the reference with no costs.