TMI Blog2003 (1) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below and restoring the matter to the file of the Income-tax Officer for determining the profits and gains attributable to the said business and to work out relief to which the assessee would be entitled on the basis of its finding?" – Both questions are answered in the affirmative, i.e., in favour of the assessee and against the Revenue. - - - - - Dated:- 2-1-2003 - Judge(s) : D. K. JAIN., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by D.K. JAIN J.-At the instance of the Revenue, the Income-tax Appellate Tribunal, Delhi Bench-C, New Delhi (for short lithe Tribunal"), has referred, under section 256(1) of the Income-tax Act, 1961 (for short lithe Act"), the following questions for our opinio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile completing assessment for the relevant assessment year, the Assessing Officer disallowed a sum of Rs. 1,34,689, out of the aforenoted amount on the ground that the said amount had been claimed merely on the basis of a provision and not on the basis of actual contribution to an approved gratuity fund created under an irrevocable trust for the said purpose. Against the said disallowance, the assessee preferred appeal to the Appellate Assistant Commissioner but without any success. The matter was carried in further appeal to the Tribunal. Relying on its earlier decisions, the Tribunal held that in principle the assessee was entitled to deduction on account of the provision for payment of gratuity in case the valuation was done on actuarial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the business of limestone, which item continued to be included in item No.3 of the Sixth Schedule. The assessee's appeal on this issue before the Appellate Assistant Commissioner did not meet with any success. The assessee carried this issue also in further appeal to the Tribunal. The Tribunal took the view that the assessee was entitled to relief under section 80-I in respect of profits and gains attributable to the limestone produced by the assessee. Accordingly, the Tribunal set aside the orders of the lower authorities and restored the matter to the file of the Assessing Officer for determination of profits and gains, which were attributable to the business of the assessee in the manufacture and production of limestone. On the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforenoted decisions, no fault can be found with the direction given by the Tribunal to the Assessing Officer to verify the claim made by the assessee in respect of the provision made for gratuity. Accordingly, the first question is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. Regarding the second question, an identical issue was considered by this court in CIT v. Orissa Cement Ltd. (No.2) [2002] 254 ITR 412, wherein, while distinguishing another decision of this court in CIT v. Dalmia Cement (Bharat) Ltd. [2002] 253 ITR 725, it has been held that an assessee who is producing limestone, even for captive use, is entitled to relief under section 80-I of the Act. In the light of the said decision, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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