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TMI Blog1990 (8) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... Department requests this court to direct the Tribunal to refer the following three questions as questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that provision for gratuity of Rs. 44,00,000 being the amount of expenditure to be incurred in consequence of closure of the mining business of the assessee was expenditure wholl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities of mining of magnesite and manufacturing batteries and sale of rubber and plastic products and had continued business operations even after the mines were taken over by the State of Tamil Nadu in the year 1978. In fact, this was the finding of the Commissioner (Appeals) which was confirmed by the Tribunal. The first question is thus misconceived and arises only if the business of minin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on behalf of the employees. The gratuity was payable during the previous year itself. Question No. 2 cannot also be said to be a question of law arising out of the order of the Tribunal. According to the Department, the Tribunal, s decision is in conflict with the decision of this court in CIT v. W. T. Suren and Co. Ltd. [1982] 138 ITR 91. We have been taken through our decision in CIT v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of Tamil Nadu. After the agreement between them, the assessee-company paid the said amount of Rs. 44 lakhs to the Tamil Nadu Government. Thus, even though the workers had the benefit of continuity of service, it was not on account of the assessee-company but as result of a separate arrangement/agreement between the workers and the Government of Tamil Nadu. This court's decision in CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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