1986 (1) TMI 4 - SC - Income Tax

Whether provision for gratuity on the basis of acturial calculations is deductible - case is remanded to the High Court for a fresh consideration of the case to examine whether provisions of section 40A(7)(b)(ii) have been complied with

Summary

The Supreme Court allowed the appeal and remanded the case to the High Court for fresh consideration regarding the deduction of gratuity amount, based on the provisions of section 40A(7)(b)(ii) of the Income-tax Act, 1961. The High Court was directed to examine compliance with these provisions. The judgment of the High Court was set aside, and the case was remanded for further proceedings.