736/CBDT.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... alue of its assets shown in the balance-sheet. In terms of sub-clause (f) of clause (ii) of Explanation II to the rule "any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares" shall not be treated as liability even though it is shown as liability in the balance-sheet. A question has arisen whether provision for gratuity sho .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... decision of the Supreme Court in the case of Metal Box Co. of India Ltd. vs. their Workmen (73 ITR 53). The Court while deciding the case of Metal Box Company Ltd. vs. their Workmen distinguished the case of Standard Mills Company Limited on the ground that in the latter case the question was whether estimated liability under gratuity schemes framed under industrial awards mounted to a debt or no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X