9911796707
TMI Blog1998 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of law, as below is submitted by the Tribunal under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), for this court's opinion : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's view that the amounts paid to the Life Insurance Corporation of India under the group gratuity scheme should be allowed as a deduction under section 37 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal found that since there was no provision in the accounts and since no fund was created by the assessee, the provisions of section 40A(7) were inapplicable. The Appellate Tribunal also found that the insurance policy to cover a liability which the assessee had under the Payment of Gratuity Act only resulted in an expenditure laid out for the purpose of business allowable as a deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perior courts of jurisdiction, the apex court and other High Courts. We rather feel that it is unnecessary to refer to all the precedents relied upon by either side, except the one decision emerging from the apex court, in the case of Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585, inasmuch as the issue involved in the question under reference had been categorically settled by the said decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant assessment years 1974-75 and 1975-76 under section 37 of the Act. In view of the decision in Shree Sajjan Mills Ltd.'s case [1985] 156 ITR 585 (SC), the deduction sought to be claimed in the case on hand, as stated above is impermissible. For the reason as abovestated, there is no other go for us except to answer the question in the negative as against the assessee and in favour of the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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