9911796707
TMI Blog1994 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal, Ahmedabad Bench "B", has referred for the opinion of this court, the following question under section 18 of the Companies (Profits) Surtax Act, 1964, read with section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the gratuity reserve amount of Rs. 1,47,327 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the assessee, directed the Surtax Officer to include the amount of the gratuity reserve as part of the capital to be computed for the purposes of the Second Schedule to the Act. The Revenue thereupon preferred an appeal before the Tribunal and the Tribunal held that the gratuity reserve was includible in computing the capital of the company for the purpose of surtax. As held by the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted without resorting to any scientific basis, such appropriation would also be a provision intended to meet a known liability, though a contingent one, for, the expression "liability" occurring in clause 7(1)(a) of Part III of the Sixth Schedule to the Companies Act includes any expenditure contracted for and arising under a contingent liability. However, if the sum so appropriated is shown to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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