The Assessing Officer disallowed the provision made by the assessee towards gratuity, leave salary, bonus and medical aid of retired staff during the period May, 2010 to January, 2012 on the ground that such sums were allowable only in the year of payment. The CIT(A) upheld the order of the Assessing Officer since assessee could not produce any evidence to prove that these provisions for gratuity represented an ascertained liability during the financial year 2012-13. However, the meaning as given in section 43B of the Income-tax Act, 1961 could not be said to be the same as in section 40A(7)(b)(i). Thus, the provision was made for payment in the previous year, it was not necessary that actual payment had to be made. If such amount was earmarked for payment of gratuity, i.e., the provision was made for payment of gratuity, the amount had to be allowed for deduction. (ITA No. 489/Coch/2018, AY.2013-14)