TMI Blog1991 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... rying on business as a contractor. It entered into a contract with Hira Cement for supplying limestone. The contract expired on March 15, 1978, and the learned Tribunal has found that the assessee's business was totally stopped on that day. The assessee was, however, made to pay a sum of Rs. 73,390 on account of payment of gratuity and compensation to the workers. It claimed deduction of this amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was closed on March 15, 1978, is not borne out by materials on record. As, however, we are in an advisory jurisdiction, we cannot go behind the facts mentioned in the statement of case. We would, therefore, examine the question on the facts as stated by the learned Tribunal. On the facts as stated, it appears that the aforesaid amount was paid on the closure of the business. If the compensation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. [1977] 108 ITR 280 (Bom). That decision shows that the payment of gratuity was held to be deductible expenditure because the business was continuing and the payment was regarded as being prompted by commercial expediency. We are not in position to take the same view in so far as the present payment is concerned. This being the position in law, we would answer the question referred to us in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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