1999 (12) TMI 53

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..... Income-tax Act, 1961 (for short the Act), at the instance of the Revenue, pertaining to the assessment year 1972-73, the following question has been referred for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing the provision for gratuity to staff amounting to Rs. 18,472 as an admissible deduction in the c .....

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..... ome-tax Appellate Tribunal (for short "the Tribunal"). Observing that the method of accounting adopted by the assessee was mercantile ; the assessee had introduced a gratuity scheme ; the actuarial report had also been filed and similar deduction was allowed to the assessee in the preceding year, the Tribunal held that the expenditure in question was allowable. This order of the Tribunal has given .....

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..... nger res integra. Applying the principle of law laid down in Shree Sajjan Mills Ltd.'s case [1985] 156 ITR 585 (SC), in CIT v. Kelvinator of India Limited [1994] 210 ITR 933 (Delhi), it was held that prior to the insertion of section 40A(7), banning, except in the prescribed circumstances, allowance in respect of the provision of gratuity, which admittedly is not applicable in the present case, pr .....

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