TaxTMI 
TaxTMI 
2003 (1) TMI 40
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....sted under which the gratuity was payable to the employees, and the latter could enforce the same, the gratuity amount of Rs. 1,34,689 should be allowed as a permissible deduction in the previous year relevant to the assessment year 1972-73? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee was entitled to the relief claimed under section 80-I in respect of the profits and gains attributable to the limestone production business of the assessee and as such in setting aside the orders of the authorities below and restoring the matter to the file of the Income-tax Officer for determining the profits and gains attributable to the said business and to work out relief to which th....
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....ther the claim made by the assessee in respect thereof was based on scientific actuarial basis. As regards the second question, the assessee had claimed relief under section 80-I read with item No.3 of the Sixth Schedule to the Act. As noted above, the assessee is in the business of manufacture and sale of cement. Up to March 31, 1972, an industry engaged in the manufacture of cement was treated as priority industry for the purpose of the said provision. However, with effect from April 1, 1972, the Sixth Schedule was amended inasmuch as cement in item No. 12 was deleted by the Finance (No.2) Act of 1971. In other words, relief under section 80-I was not admissible to a cement manufacturing industry. Therefore, while completing the assessme....
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....d senior standing counsel for the Revenue. There is no appearance on behalf of the assessee. As noted above, both the issues are no longer res integra, in so far as this court is concerned. A similar issue with regard to the claim of gratuity came up for consideration of this court in CIT v. Ghaziabad Engineering Company (P.) Ltd. [2001] 249 ITR 244, wherein it was held that where an amount is set apart by way of provision or by way of a reserve or fund to meet the liability of gratuity as and when it becomes payable, it will not be deductible allowance or expenditure but where an approved gratuity fund is created for the exclusive benefit of the employees under an irrevocable trust, contribution made to the fund during the year of account....