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Issues:
1. Claim of exemption under section 11 of the Income-tax Act for assessment years 1981-82 and 1982-83. 2. Carry forward of business loss and set off against income for assessment year 1982-83. 3. Allowance of provision for gratuity and investment allowance in computing business income. 4. Disallowance of deduction for provision of contribution to gratuity fund. Analysis: Issue 1: Claim of exemption under section 11 The appeals concerned the claim of exemption under section 11 of the Income-tax Act for the assessment years 1981-82 and 1982-83. The Commissioner (Appeals) had allowed the claim of exemption on income from house property but not on other incomes. The Tribunal, following its earlier order, held that the assessee was not entitled to exemption under section 11 for income other than income from house property. The claim for exemption was rightly not allowed by the revenue authorities on these other incomes. Issue 2: Carry forward of business loss and set off The next grievance was regarding the computation of business income and the carry forward of loss for the assessment year 1981-82 for set off against income in 1982-83. The Tribunal directed the assessing officer to examine the claim of carry forward of business loss for 1981-82 against business income for 1982-83. It was emphasized that if the conditions under section 72 were met, the assessee should be allowed to set off the loss brought forward and carry forward any unabsorbed amount. Issue 3: Allowance of provision for gratuity and investment allowance Regarding the provision for gratuity and investment allowance in computing business income, the Tribunal held that these should be allowed in working out the income. The Tribunal directed the assessing officer to entertain the claim of investment allowance for the assessment year 1982-83 and make a decision based on merits and in accordance with the law. Issue 4: Disallowance of deduction for provision of contribution to gratuity fund The final issue related to the disallowance of the deduction for the provision of contribution to the gratuity fund. The Tribunal held that the provision for contribution to the recognized gratuity fund should be allowed as a deduction in working out the business income. The Tribunal directed accordingly, allowing the deduction for the provision for contribution to the gratuity fund for the assessment year 1981-82. In conclusion, the appeals were partly allowed, addressing the various grievances raised by the assessee regarding the exemption claim, carry forward of business loss, allowance of provisions for gratuity and investment, and deduction for contribution to the gratuity fund.
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