9911796707
TMI Blog1989 (4) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... , the following question of law has been referred to this court under section 256(1) of the Income-tax Act, 1961, for the assessment year 1972-73 : "Whether, on the facts and in the circumstances of the case and on a correct interpretation of law, the Tribunal was justified in holding that provision for gratuity based on actuarial valuation was an allowable deduction in computing the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sistant Commissioner, he found that the West Bengal Employees' Payment of Compulsory Gratuity Ordinance, 1971, came into force on June 14, 1971, which was before the close of the accounting year of the assessee. The Appellate Assistant Commissioner, therefore, held that the liability for payment of gratuity arose in this year. The Appellate Assistant Commissioner referred to the decision of the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be only in respect of Incremental liability related to this particular year and not for all the earlier years. The Tribunal, after considering the facts of the case, upheld the order of the Appellate Assistant Commissioner, following the decision relied upon by him. It was further held by the Tribunal that the liability was for the whole of the amount arrived at as per actuarial valuation a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the Supreme Court in Vanaz Engineering P. Ltd. [1986] 162 ITR 876 as well as the other decisions of the Supreme Court on this point and thereafter held as follows (at p. 439) : "The decision of the Supreme Court in Vanaz Engineering P. Ltd. [1986] 162 ITR 876, in our view, does not advance the case of the Revenue as in that case the matter was remanded to the High Court on a concession. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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