Bombay H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the gratuity liability determined on actuarial valuation for the period prior to 31st March ,1972 ?

High Court Of Bombay

CIT vs. Dawn Mills Co. Ltd.

Sections 37(1)

Dr. B.P. Saraf & D.G. Deshpande, JJ.

IT Ref. No. 502 of 1987

15th April, 1999

Counsel Appeared

R.V. Desai with T.C. Kaushik, for the Revenue : P.J. Pardiwala i/b Dhru & Co., for the Assessee

JUDGMENT

BY THE COURT :

By this reference the following question of law has been referred for the opinion of this Court under s. 256(1) of the IT Act, 1961, at the instance of the Revenue :

“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the gratuity liability determined on actuarial valuation for the period prior to 31st March ,1972 ?”

Mr. R.V. Desai, learned counsel for the appellant, states that the controversy in the above question is covered in favour of the assessee by the decision of this Court in CIT vs. Tata Hydro Electric Supply Co. Ltd. (1996) 132 CTR (Bom) 137 : (1996) 219 ITR 178 (Bom) : TC S15.1580.

In view of the above statement and following the ratio of the above decision, the question referred to us is answered in the affirmative, i.e., in favour of the assessee and against the Revenue.

Reference stands disposed of accordingly will no order as to costs. Certificate copy expedited.

[Citation : 247 ITR 552]

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