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TMI Blog2008 (10) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has not paid the same during the previous year relevant the assessment year and that as per section 43B, any sum payable by the assessee could be allowed as a deduction in computing income of that previous year in which the same is actually paid. It also claimed deduction of Rs. 2,31,38,952 being the replacement cost of the machinery as a revenue expenditure. The Commissioner held that it was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the circumstances of the case, the Income-tax Tribunal is right in law in holding that disallowance under section 43B on the contributions towards gratuity fund after the close of the previous year was allowable? (ii) Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that a sum of Rs.2,31,38,953 claimed as expenditure on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as revenue expenditure and the disallowance of payment towards gratuity fund was deleted. Aggrieved by the same, the Department filed appeal, which was dismissed. 4. The first question is covered by the decision of the apex court in CIT v. Vinay Cement Ltd. [2007] 213 CTR 268; [2009] 313 1TR (St.) 1 wherein the Supreme Court has held that the assessee is entitled to claim the benefit un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city remaining constant even after replacement, the matter needs to be remitted to the Commissioner (Appeals). There is one more reason why we are inclined to remit the matter. As stated above, the impugned judgment of the Madras High Court in the case of CIT v. Janakiram Mills Ltd. [2005] 275 ITR 403 has been set aside by this court as there was confusion between the tests to be applied in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable. We express no opinion on the aforestated contentions at this stage. It is for the Commissioner to decide the aforestated questions and contentions raised by the Department as well as by the assessee. The Commissioner will decide the matter uninfluenced by any observations made in the impugned judgment of the High Court Liberty to the parties to adduce additional evidence." 6. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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