TMI Blog1989 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... d the following two questions of law for decision of this court : "(1) Whether, on the facts and in the circumstances of the case, and without entering a finding as to the fulfilment of all the three conditions laid down by the statute, the Tribunal was right in holding, that the assessee would be entitled in principle, to the deduction of the provision if that provision related to the year of liability ? (2) Whether, on the facts and in the circumstances of the case and considering the quantum of the claim of the assessee before the Officer, should not the Tribunal have limited the claim (assuming the claim is permissible) to only rupees three lakhs ?" The question that arises for consideration is simple and lies in a narrow compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Commissioner of Income-tax (Appeals) was dismissed by order dated July 22, 1981. The assessee came in second appeal before the Income-tax Appellate Tribunal, Cochin Bench. After referring to the rival contentions of the parties, the Appellate Tribunal held that the assessee would be entitled to the deduction relating to gratuity in terms of section 40A(7)(b)(i) of the Income-tax Act. Proceeding further, the Appellate Tribunal held that the Income-tax Officer should verify two points : (1) whether the actuarial liability of Rs. 1,76,204 is the liability of the previous year as contemplated by section 40A(7)(b)(i) of the Act, and (2) whether the actual payment of Rs. 1,52,164 is or is not part of this actuarial liability of Rs. 1,76,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is postulated only in cases coming under section 40A(7)(b)(ii) of the Act, which deals with three prior years, the three prior years previous to that relevant year. All that the assessee is entitled to is the provision made by it for the payment of the sum by way of contribution to the gratuity fund or for the purpose of payment of gratuity due that has become payable during the previous year. We are unable to understand as to why any actuarial valuation is necessary in that matter. Be that as it may, it cannot be that the assessee is entitled to any deduction in addition to the entitlement available to him under section 40A(7)(b)(i) of the Act. This position is clear. We state that whatever deduction the assessee is entitled to under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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