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TMI Blog1975 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... at is what is seen raised in the grounds of appeal before the AAC. He has not disputed the position. 2. By the end of the accounting year the assessee has been in existence only for four years. The assessee had made a provision for Rs. 84,736 for payment to its employees of gratuity in future on the basis of the Kerala Industrial Employee's Payment of Gratuity Act, 1970, which came into force in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the provision is an allowable deduction. 4. The submission that the workers had not completed five years of continuous service and as such the assessee at the end of the accounting year, had no legal obligation under s. 4(1)(b) of the Gratuity Act to pay gratuity is of no force. In the House of Lords case in also the position was the same. There the employees on fixed term contract got th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... many cases laid down the principles for quantification. We are assured that all the IT authorities in this region are aware of our guidelines laid down in these cases. So, the assessee will have to produce an actuarial valuation of the liability before the ITO within a reasonable time. If not produced, the ITO may work it out in accordance with the guidelines laid down by us and if necessary after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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