after pointing out that the reserve for gratuity was not allowed by way of deduction for computing the profits under ... court was concerned with the deductibility of the liability towards gratuity while computing the available surplus for purposes of bonus under the Payment of Bonus
which was a provision for staff gratuity, were transferred to reserve for staff gratuity as from 1st December, 1961.
(iii) Rs. 86,545 were ... terminal pay, for bad and doubtful debts and for staff gratuity to meet gratuity payments falling due from time to time were retained for providing
company included reserves for bad and doubtful debts and for gratuity. In his computation, according to the Second Schedule to the said ... doubtful debt reserve and the reserve for gratuity In the capital computation in order to ascertain the quantum of statutory deduction in accordance with Section
Jet Airways (India) Ltd, Mumbai vs Dcit Rg 5(2), Mumbai on 27 September, 2017
KPCC
Gratuity Rules quoted above, it appears that amount of gratuity is to be
computed at the rate of 15 days wages on the rate ... Payment of Gratuity Act is concerned, it
provides that the gratuity has to be computed and paid to an employee at the
rate
under the Payment of Gratuity Act and the second respondent, after computing the gratuity payable to them, had passed an order ... open to the Controlling Authority, under the payment of gratuity Act, to compute the amount, it is not open to any authority to take steps
order, the A.O. is directed to exclude the
provision for gratuity while computing the book profit under
section 115 JB."
37. We have ... assessee and
directed the AO to exclude the provision of gratuity while computing the
book profit under section 115JB by following the decision
provision on
leave encashment and on account of gratuity. Accordingly, he added
all the amount in computation of income under Section 115JB ... made disallowance under the provision for gratuity in
computing the book profit under Section 115JB of the Act. It was
36
ITA Nos.3865
stated that the Court had held that the provision for gratuity in computing the net wealth had to be construed not as a debt owed ... gratuity fund. Under the accrual method (para 3.1.2) (iii) it is stated:
(iii) As a further alternative, the liability for gratuity is computed by actuarial
taxation
or for retirement gratuity or for proposed dividend in the
assessees' cases had been allowed in computing their profits
under the Income ... taxation or for retirement
gratuity, or for proposed dividend in the concerned
assessees' case had been allowed in computing the assessee's
profits
