9911796707
TMI Blog1999 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee made a provision of Rs.84,849 during the assessee's financial year which ended on May 31, 1975, towards the liability for payment of gratuity to its employees. The amount was not disbursed to the employees towards the gratuity that was payable during that year. The assessee set up a gratuity fund by trust deed dated December 28, 1975, after the closure of the financial year and secured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides that the provisions of that section shall have effect notwithstanding anything to the contrary contained in any other provision of this Act, relating to the computation of income, under the head "Profits and gains of business or "profession". Section 40A(7)(a) of the Act is relevant for the purpose of this case. That provision reads as under: "Subject to the provisions of clause (b), no dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned is 1976-77, to which the special provision contained in section 40A(7)(b)(ii) of the Act has no application and it is, therefore, unnecessary to consider that provision for the purpose of deciding the assessee's entitlement to deduct the provision made by it in its account for the financial year 1974-75. During the financial year 1974-75, the assessee had not created any approved gratuity fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Officer to disallow the deduction that had been claimed. Learned counsel for the Revenue brought to our notice a decision of a Division Bench of the Kerala High Court in Premier Cable Co. Ltd. v. ("IT [1992] 193 ITR 719, wherein a similar view has been taken with regard to the applicability of section 40A(7)(b)(i) of the Act. The questions referred to us are, therefore, answered in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
