Allowing the appeal of the assessee the Court held that ; contributions paid by the assessee to the LIC as premium for the policy obtained for indemnification of the gratuity liability towards the employees even for the prior years, when the employees were in the employment of the Company taken over would be eligible for deduction.
Nortrans Marine Services (P.) Ltd. v. ACIT (2018) 258 Taxman 115/ 305 CTR 321/ 170 DTR 108 (Ker.)(HC)
S. 36(1)(v) : Contribution approved gratuity fund -Contributions paid to LIC as premium for policy obtained for indemnification of gratuity liability towards employees, even for prior years, when employees were in employment of company taken over by assessee would be eligible for deduction .[S.37(1)]