High Court Of Bombay
CIT vs. Gabriel India Ltd.
Sections 37(1), 28
Asst. Year 1972-73
S.P. Bharucha & T.D. Sugla, JJ.
IT Ref. No. 233 of 1976
9th December, 1988
Counsel Appeared
Bhatia, S.V. Naik & K.C. Sidhwa, for the Revenue : Arun Sathe, B.V. Jhaveri & J. I. Patel, for the Assessee
D. SUGLA J. :
The only question of law raised in this reference at the instance of the Department is this :
“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the entire provision for gratuity made in the accounting year relevant to the asst. yr. 1972-73 was deductible expendtiure under s. 28 or s. 37(l) of the IT Act, 1961 ?”
Counsel are agreed that the issue involved herein in this reference is squarely covered by the Supreme Court decisions in the case of CIT vs. Andhra Prabha P. Ltd. (1986)54 CTR (SC) 313 : (1986) 158 ITR 416 and in the case of Shree Sajjan Mills Ltd. vs. CIT (1985)49 CTR (SC) 193 : (1985) 156 ITR 585(SC) and that following these decisions, the question must be answered in the affirmative and in favour of the assessee.
The question is so answered. No order as to costs.
[Citation : 179 ITR 54]
