TMI Blog1986 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... of the court was delivered by PATHAK J.- This appeal by special leave is concerned with a question of some importance. The respondent, which maintains its accounts on the mercantile system, follows the calendar year as its accounting period. It had no gratuity scheme for the years preceding the calendar year 1970, but such a scheme was formulated for the first time in the middle of 1970 and was put into operation with effect from July 1, 1970. The scheme provided that in the case of the retirement or resignation of any employee, he would be eligible to gratuity provided he had put in 15 years of continuous service. In the case of death or permanent physical or mental disablement, an employee was eligible for gratuity at different rates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellate Assistant Commissioner of Income-tax, following the decision of this court in the case of Metal Box Company of India Ltd. v. Their Workmen [1969] 73 ITR 53 (SC), held that the entire amount was allowable. Accordingly, he gave a relief of Rs. 1,84,056. The Revenue proceeded in second appeal to the Income-tax Appellate Tribunal and the Appellate Tribunal, following an earlier decision rendered by it in a case where the decision of this court in Metal Box Company of India Ltd. [1969] 73 ITR 53 (SC), of the Allahabad High Court in Madho Makesh Sugar Mills P. Ltd. v. CIT [1973] 92 ITR 503 and of the Delhi High Court in Delhi Flour Mills Co. Ltd. v. CIT [1974] 95 ITR 151, had been considered, came to the conclusion that the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected on April 23, 1980. It is unfortunate that this discrepancy exists in the record before us. It demonstrates a want of sufficient care in preparing the petition. It makes no difference, however, for even if we take it that the High Court rejected the reference application made by the Revenue, we are of the opinion that a question of law does arise in the terms sought by the Revenue. We are further of the opinion that instead of sending the case back to the High Court and directing it to call for a statement of the case and thereafter to answer the question of law, it would be appropriate to dispose of the case on the merits itself inasmuch as the question is one which has engaged the attention of this court in a number of cases alre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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