9911796707
TMI Blog1986 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ot to exclude the borrowed capital while computing the capital employed for allowing relief under section 80J of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in following the decisions of the various High Courts, wherein rule 19A of Income-tax Rules, 1962, has been declared ultra vires the Constitution of India ? (3) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that there was no violation of the provisions of section 40A(7)(b) of the Income-tax Act, 1961, in allowing the relief of Rs. 8,29,000 being provision for gratuity (4) Whether, on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was partly allowed. The Tribunal upheld the order of the Commissioner in respect of the claim for relief under section 80J and dismissed the Revenue's appeal. It reversed the finding of the Commissioner and held that the assessee was entitled to claim deduction of the provision made for gratuity without any violation of section 40A(7) of the Act. The imposition of interest under section 215 of the Act was set aside. Aggrieved by the Tribunal's decision, the Revenue applied for a reference which has been made by the Tribunal under section 256(1) of the Act for decision of the above-quoted questions of law. There is no controversy that the above-quoted first three questions have to be decided in favour of the Revenue in view of the settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the Revenue further contended that it was also unnecessary to go into this question for the simple reason that the assessee has the remedy available to apply for waiver or reduction of interest to the Income-tax Officer or the Commissioner in accordance with law when the question would be considered and duly decided. In our opinion, the availability of this remedy to the assessee to have the question of waiver or reduction of interest considered and decided even now in accordance with law is sufficient for us to decline to examine the correctness of the contention advanced by learned counsel for the assessee. We prefer to adopt this course for the reason that the facts necessary to decide this question relating to reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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