1984 (1) TMI 274 - HC - Income Tax

Summary

The High Court of Calcutta allowed the deduction of gratuity liability under the Income Tax Act for the assessment year 1972-73, even though no provision was made in the books of account. The court held that the liability was statutory and not dependent on accounting entries. The decision was based on previous rulings and the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971. The Tribunal's decision in favor of the assessee was upheld.