1980 (11) TMI 62

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..... incurred by the assessee for the issue of bonus shares. The details of these expenses are as under: Particulars Amount Printing charges of coupons Rs. 639.88 Printing charges of shares Rs. 3,434.40 Printed envelopes Rs. 811.00 Printed covers. Rs. 5,00.00 Stamp expenses. Rs. 1,371.75 Postage Rs. 5,850.30 Total Rs. 17,127.41 In the view of the ITO the expenditure claimed by the ass .....

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..... incurred the expenditure on postage for sending the right shares to the existing shareholders. The Tribunal held that though the expenses might not be related to the earnings of profit of the business transaction proper as such they are nevertheless expenses incurred ordinarily and in the course of business and for the purpose of carrying on the business. The Tribunal held that the expenses were .....

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..... 10,79,935 being provision of gratuity claimed by the assessee on the working of the report of the actuary. It is urged on behalf of the assessee that in view of the provisions of ss. 28,29 and 36/37, and as the assessee is following mercantile system of accounting, and as payment of gratuity had become due and ascertained liability, the provision ought to have been allowed in computing the total i .....

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..... s upheld because on provision was made in the accounts of the assessee for any liability in respect of gratuity. The decision by the larger Bench of the Tribunal at Madras reported in (1979) 13 CTR (Trib) 1 (Nov., 1979) was given on the facts of its own case. Following, with respect, the decisions of the Tribunal in ITA No. 2095/Bom/1976-77 dt. 30th July, 1977 and the decisions of the Tribunal, Ah .....

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..... unting year. The CIT(A) also has directed the ITO to do the needful if the exemption certificate for the year under appeal was produced before the ITO. Shri Shah stated that the assessee would take necessary steps for obtaining the exemption certificate. The claim for relief under s. 80F in the absence of such exemption certificate was not pressed. 7. In the result, the appeal is partly allowed. .....

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