736/CBDT.

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..... deducted from the value of its assets shown in the balance-sheet. In terms of sub-clause (f) of clause (ii) of Explanation II to the rule "any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares" shall not be treated as liability even though it is shown as liability in the balance-sheet. A question has arisen whether provis .....

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..... odified by the latter decision of the Supreme Court in the case of Metal Box Co. of India Ltd. vs. their Workmen (73 ITR 53). The Court while deciding the case of Metal Box Company Ltd. vs. their Workmen distinguished the case of Standard Mills Company Limited on the ground that in the latter case the question was whether estimated liability under gratuity schemes framed under industrial awards mo .....

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..... n these circumstances, provision for gratuity cannot be treated as a liability for the purpose of determining the value of shares. 3. The position in law as explained in the preceding para may please be brought to the notice of all the assessing Officers in the charge. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanag .....

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