1995 (1) TMI 5 - SC - Income Tax

Accounting/Assessment Year - Held that assessee is entitled to the deduction for the provision made by the assessee for gratuity payable to its employees - Tribunal is justified in taking into consideration the completed years of service of the employees for quantification of liability - Held that the exact amount of which deduction is to be given has to be determined before the deduction is actually made

Summary

The Supreme Court dismissed the appeals against the High Court decision regarding the deduction of gratuity under the Kerala Industrial Employees' Payment of Gratuity Act, 1970. The High Court ruled in favor of the assessee, citing previous court decisions. The exact deduction amount is to be determined before it is granted. The appeals were dismissed with no costs.