9911796707
TMI Blog1979 (4) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, took the view that the deduction admissible for this year amounted to Rs. 6,42,171, namely the difference between the liability as on 31st Dec., 1973 amounting to Rs. 43,56,274 and the liability as on 31st Dec., 1974 already indicated above. As against this the company had actually contributed Rs. 4,03,626 into the approved gratuity fund. He therefore allowed this sum under s. 40A(7)(b)(i) of the Act. s. 407(b)(ii) refers to the provision other than what is covered under the other clause mentioned earlier. This refers to the initial contribution and it was considered in the year 1974-75. Hence it cannot be considered again. He also made a note that in the profit and loss appropriation account the company had provided for Rs. 14,68,61 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dec., 1973 (1974-75 asst. yr.) Rs. 4,03,626 Incidentally, it was submitted that the amount allowed by the ITO is the amount attributable to 1974-75 and which has been wrongly taken as attributable to this asst. yr. The balance of Rs. 14,68,618 has been provided for in the accounts for this year. Originally a sum of Rs. 6. lakhs was provided in the accounts on an adhoc basis prior to acturial valuation. He also submitted that the Tribunal has set aside the orders relating to this point back to the ITO in ITA Nos. 2058 and 2059/75-76, Cochin Bench, Camp: Coimbatore dt. 20th Oct., 1978. Since the earlier years' matter is still open, the ld. counsel finally submitted that the matter may be remitted back to the ITO to consider all these years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these conditions are satisfied the assessee is entitled to get the deduction even for the initial contribution in this year. Expln. 2 has also to be taken note of in determining the amount. We find that the earlier years' matter on this subject is also before the ITO. In view of this we hold that the case should go back to the ITO for a fresh disposal on this point. 6. The next contention relates to tiffin expenses to the extent of Rs 2,968. This was considered as an expenditure in the nature of entertainment and disallowed by the authorities below. We were informed that these expenses on tea and coffee of a customary nature for the clients and accordingly we hold that this sum cannot be considered as in the nature of an entertainment exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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