TMI Blog1990 (8) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961, requesting that we should direct the Tribunal to refer to us the following question as a question of law arising out of the Tribunal's order. The question is : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the following funds constituted 'reserves' and were to be included in the computation of the assessee company's capital fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses not designated to meet any liability. Item No. (ii), viz., provision for contingencies, is created in the following circumstances. The employees of the respondent had made claims for additional salary, dearness allowance, etc., which were not accepted by the respondent. Negotiations were going on between the respondent and representatives of the employees. In order to meet any possible clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at despite these provisions of the Payment of Bonus Act, its employee might make a claim for bonus on the basis of its past practice. There was, in fact, no demand at the relevant time from the employees at all for such payment of bonus. This amount has been included in the computation of the respondent's income. The fourth item which is reserve for depreciation and the fifth item which is in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent as a deduction in its income-tax returns. Hence, this is really in the nature of a reserve. In respect of similar claims for the assessment year 1974-75, Income-tax Application No. 24 of 1979 which was filed, before this High Court for raising a similar question was rejected by the High Court. In the circumstances, in our view, it would be academic to raise the proposed question an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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