1975 (11) TMI 34

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..... ng the gratuity payable to them in respect of the Period of their service with the earlier employer, M/s. Bhavani Tea Produce Company. The said dispute was referred to the Industrial Tribunal, Madras. On December 27, 1958, the Industrial Tribunal passed an order directing the assessee to pay to the workers Rs. 28,206 as gratuity in respect of the period during which the employees had served M/s. Bhavani Tea Produce Company. In the account year ended March 31, 1961, the assessee-firm debited the said sum of Rs. 28,206 in its accounts under the head " Welfare Expenses " and claimed it as a deduction in the relevant assessment year 1961-62. This claim was disallowed by the Income-tax Officer on the ground that the gratuity was in respect of .....

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..... he year of account ended March 31, 1959. At the time when the Tribunal disposed of the departmental appeal for the assessment year 1961-62, there was also pending before it the assessee's appeal for the assessment year 1959-60. While disposing of the said appeal of the assessee relating to the year 1959-60, the Tribunal took note of its earlier decision rendered in the departmental appeal relating to the year 1961-62, holding that the expenditure of Rs. 29,206 was allowable in the assessment year 1959-60 and gave relief to the assessee so far as that sum is concerned. This was done by the Tribunal at the instance of the assessee who had earlier on May 25, 1966, raised additional grounds of appeal taking notice of the fact that the depart .....

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..... in relation to the said sum in the assessment year 1961-62. When the assessee found that the department has questioned the order of the Appellate Assistant Commissioner granting relief in relation to the said sum in the assessment year 1961-62, it had filed additional grounds of appeal on May 25, 1966, claiming that the said sum of Rs. 28,206 was an allowable item of expenditure in the assessment year 1959-60. The assessee obtained leave to file the additional grounds of appeal after notice to the department. The department did not then file any counter-statement to the petitioner's request for leave to file additional grounds of appeal. Once the Tribunal had allowed the additional grounds of appeal to be raised, it should be taken that th .....

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