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2019 (2) TMI 1359 - AT - Income TaxDisallowance of provisions made towards gratuity - provision for gratuity as disallowed on the ground that it was not actually paid and also not ascertained - HELD THAT:- Gauhati High Court in the case of George Williamson (Assam) Ltd. vs. CIT [1996 (9) TMI 52 - GAUHATI HIGH COURT] held that there are three modes of payment, namely, (1) having an approved fund, (2) by having a fund though not approved, and (3) when there is no fund but provision is made for payment of gratuity. In the first two cases payment has to be made and in the third case it is not necessary to make payment but a provision has to be made for such payment. U/s. 43B of the Act, the Legislature has specifically mentioned about fund. Therefore, the meaning as given in section 43B cannot be said to be the same as in section 40A(7)(b)(i) of the Act. Thus, in this case, provision was made for payment of gratuity to retiring employees in respect of the previous year, it is not necessary that actual payment has to be made. If such amount is earmarked for payment of gratuity, i.e., provision is made for payment of gratuity, the amount has to be allowed for deduction. In view of this, we are inclined to decide the issue in favour of the assessee
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