9911796707
TMI Blog1982 (4) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... 978. The two points that arise are dealt with as follows: 2. Provision for gratuity---Disallowance of Rs. 18,599 - The assessee-company has an approved gratuity fund. The balance in the fund account as on 31-3-1978 is Rs. 3,34,842 whereas the liability for payment of gratuity as on 31-3-1978 as per actuarial valuation works out to Rs. 26,202. The ITO held that as against this there is already an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years commencing from 1-4-1976 onwards have become irrelevant. Those considerations have ceased to be of any significance. After the enactment of section 40A(7), if any provision for gratuity is allowed as a deduction it is not because of any contractual or statutory liability on the part of the assessee, but only because of a payment made into the fund either in the relevant accounting yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of payment of a sum by way of any contribution towards an approved gratuity fund or for the purpose of payment of any gratuity that has become payable during the previous year. The provision in dispute before us, is certainly not a provision for the purpose of payment of any gratuity that has become payable during the previous year. So the only question for consideration is whether it is a provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not made within a reasonable period, it may cease to be such a provision. Therefore, this question has to be verified in the light of the payments of these amounts into the fund and the exact dates of payments. So the Commissioner (Appeals) will verify these dates of payments and the amounts of payments and decide the question whether this provision of Rs. 26,202 is a provision made by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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