9911796707
TMI Blog2000 (4) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... was not, ascertained on scientific basis and whether the Tribunal's finding is perverse and contrary to facts ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that gratuity provisions based on actuarial valuation and as approved by the board of directors and shareholders was not allowable under section 28 or section 36 read with section 145 of the Income-tax Act, 1961 ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that provision of Rs. 4,70,830 for doubtful debts, loans and advances was not allowable under section 28 or section 36 ? (4) Whether, on the facts and in the circumstances of the case, the Tribunal was right in not conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r extra shift allowance on building and furniture and the assessee claimed that tea bushes are plant and, therefore, the depreciation should be allowed on the tea bushes. The assessee has also claimed the gratuity liability on actuarial basis and also claimed deduction of doubtful debts to the tune of Rs. 4,17,830 and also investment allowance in respect of the tea plants. First, we will take up the questions referred at the instance of the assessee. The first and second questions relate to the gratuity provision based on actuarial valuation. At the outset, learned counsel for the assessee, Mr. Khaitan, fairly admits that now the issue has been concluded by the apex court in the case of Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded the issue against the assessee that the assessee is not entitled for deduction on the basis of any provision for gratuity on actuarial basis. The next question relates to bad debts, whether the claim of the assessee regarding bad debts of Rs. 4,17,830 should be allowed. Learned counsel for the assessee, Mr. Khaitan submits that the assessee has debited this amount in its profit and loss account and made provision for bad debts as doubtful debts. Learned counsel for the Revenue, Mr. Mullick, submits that there is no finding of the Tribunal that the assessee has debited this amount. Learned counsel for the assessee, Mr. Khaitan further submits that once the loan advance is debited in the profit and loss account and credited as pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igible for depreciation under section 32 read with rule 8(2) of the Income-tax Rules, the deduction under rule 8(2) is allowed in lieu of depreciation. Therefore, he submits that the new tea plants do not get the benefit of rule 8(2) of the Income-tax Rules and the plants have a life of more than 40/50 years. There may not be a real benefit because the assessee is not entitled to get the real benefit of the plants, planted recently. The amended definition of plant in clause (3) of section 43 reads as under: " 'plant' includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purposes of the business or profession, but does not include tea bushes or livestock." The Legislature has in unambiguous language ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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