NASIM SIKANDAR, J.- This is a case stated by the Lahore Bench of the Income Tax Appellate Tribunal. The question framed for our consideration and answer reads as under:- "Whether in the circumstances and facts of the case the provision for leave salary and gratuity over , and above the actual payment made is a contingent or ascertained liability?
2. After hearing the learned counsel for the revenue we are of the view that the issue in hand already stands determined by the Hon'ble Supreme Court of Pakistan is re: Commissioner of income Tax Companies-il Karachi v. Messrs oriental Dyes and chemical Co. Ltd. (1992 PTD 668). By way of that judgment the Hon'ble Court maintained the findings earlier recorded by a Division Bench of the Karachi High Court to which the appellate Tribunal had referred the following question:- "Whether in the facts and circumstances of the case the appellate Tribunal was justified in upholding the disallowance of the claim of gratuity payable to the employees?
3. To decide the question the Hon'ble Judges of the Karachi High Court mainly relied upon their earlier findings in CIT Karachi v. Messrs Pakistan security Printing Corporation (1985 PTD 413). The apex Court approved the ratio settled in that case by the Karachi High Court.
4. That being so we will hold that the liability of gratuity ascertained each year is a proper charge against P and L accounts though the liability to pay may accrue subsequently.