Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2002 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2002 (7) TMI 66 - HC - Income Tax"1. Whether having regard to provisions of rule 103 of the Income-tax Rules, 1962, the Appellate Tribunal was right in law in holding that the assessee-company is eligible for deduction of gratuity of Rs. 3,41,202 as admissible under section 36(1)(v) of the Income-tax Act, 1961? - 2. Whether, having regard to provisions of rule 103 of the Income-tax Rules, 1962, the Appellate Tribunal's interpretation that the last drawn salary could also be construed to be salary during the year is sustainable in law?" - The short point that arises for consideration is whether the assessee is entitled to the deduction of gratuity amount of Rs. 3,41,203 paid to an approved gratuity fund as a contribution made to the fund. - we hold that the actual payment made to the gratuity fund is allowable as business expenditure and the Tribunal was right in holding that it should be allowed as a business expenditure. Though the question referred to us raises the question regarding allowability under section 36(1)(v) of the Act, we hold that the entire amount would be allowable either under section 36(l)(v) or under section 37 of the Act. Accordingly, the first question referred to us is answered in favour of the assessee and against the Revenue. In view of the answer to the first question, it is unnecessary to answer the second question
|