Disallowance cannot be made for provision for gratuity for mere non-payment

Thiruvalla East Co-operative Bank Ltd. Vs ITO (ITAT Cochin) Conclusion: Disallowance under section 43B could not be done  in respect of provision for gratuity made for the benefit of the retired employees on the reason that no actual payment was made. Held: AO disallowed the provisions made by assessee towards gratuity, leave salary, bonus and medical aid of retired staff on the ground that such sums were allowable only in the year of payment.It was concluded under section 43B, the Legislature has specifically mentioned about the fund. Therefore, the meaning as given in section 43B cannot be ...