S.C. decisions.

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....hree Sajjan Mills Ltd. Vs. CIT (M.P) dated 8th October, 1985 (1985) 156 ITR 1(St) in regard to payments or provision for gratuity. The Court has inter-alia held that : "On a plain construction of clause (a) of sub-section (7) of Section 40A of the Act, what it means is that whatever is provided for future use by the assessee out of the gross profits of the year of account for payment of gratuit....

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.... have no application, would defeat the very purpose and object of section 40A(7) and render it nagatory." (2) M/s. Scientific Engg. House (P) Ltd. Vs. CIT dated 1st November, 1985 in regard to expenses for a designation of a technical knowledge in the from of drawings, designs and books etc. The Court has approved the view of Gujarat High Court in the case of Elecan Engg. (96 ITR 672 (Guj) and ....

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....unabsorbed business loss of earlier years. The Court held that such business loss will not have precedence over current year's depreciation. (5) CIT Vs. J.H. Gotla. dated 29th August 1985 [23 Taxman 10 (SC)] regarding carry forward and set off of loss incurred by spouse or minor. The Court held that where Section 16(3) of the old Act (Section 64(1) of the 1961 Act) operates, profits or loss fro....