1988 (6) TMI 14 - HC - Income Tax

Summary

The High Court of Calcutta, in response to questions raised by the Commissioner of Income-tax, ruled in favor of the assessee regarding the deduction of liability to pay gratuity to employees under the West Bengal Employees' (Payment of Compulsory Gratuity) Act, 1971 for the assessment year 1972-73. The court referred to a previous decision in CIT v. Eastern Spinning Mills Ltd. [1980] 126 ITR 686 to support its decision. No costs were awarded.