Calcutta H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provision for gratuity liability of the employees based on the service for the earlier years under the West Bengal Employees’ Payment of Compulsory Gratuity Act, 1971, which came into force w.e.f. June 14, 1971, was an allowable deduction in working out assessee’s business income for the asst. yr. 1972-73 ?

Counsel Appeared

S. Mukherjee, for the Revenue : A. K. Dey, for the Assessee.

AJIT K. SENGUPTA, J.:

At the instance of the CIT, Central-I, Calcutta, the following question of law for the asst. yr. 197273 has been referred to this Court under s. 256(1) of the IT Act, 1961 :

“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provision for gratuity liability of the employees based on the service for the earlier years under the West Bengal Employees’ Payment of Compulsory Gratuity Act, 1971, which came into force w.e.f. June 14, 1971, was an allowable deduction in working out assessee’s business income for the asst. yr. 1972-73 ?”

2. This question is concluded by the decision of this Court in the case of CIT vs. Eastern Spinning Mills Ltd. (1980) 19 CTR (Cal) 94: (1980) 126 ITR 686 (Cal). Following the said decision, we answer the question referred in this reference in the affirmative and in favour of the assessee. It may be mentioned that the statement of the case was submitted in May, 1979, but till now the CIT, West Bengal, has not filed the paper book.

Having regard to the fact that the question is concluded by the decision of this Court and we have not been told whether any appeal has been preferred against the said judgment of this Court, the filing of the paper book in this case is dispensed with. However, a copy of the order shall be sent to the assessee within a fortnight from date.

K. M. YUSUF, J.:

I agree.

[Citation :182 ITR 428]