2002 (3) TMI 42

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....o ourselves under section 256(2). The questions are as follows: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals) deleting a sum of Rs. 11,08,658 on account of gratuity payable to the employees on transfer to telecommunication department of the State Government? 2. Whether, on the fact....

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.... to Webel, a West Bengal Government organisation, as a going concern. The employees also got transferred maintaining continuity of service. The agreement of transfer is dated in 1978 and the memorandum of understanding involving the workers is dated February 29, 1980. As a result of this, the assessee had a liability accrued to itself as on March 1, 1980, as to the making over of the amounts....

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....aken by the Department before the Tribunal. The Tribunal dealt with the section none the less for what it felt, was the cause of completeness. It formed the view that the payment was not being made for the employees of the assessee who had ceased to be such. It, therefore, opined that generally under section 37(1) the provision for the liability was deductible. Mr. Pal gave us the case of W.....

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....gratuity of the workers ultimately must cause the deletion of the said sum of Rs. 11,08,658, and in this regard the Commissioner of Income-tax (Appeals) and the Tribunal were both correct in law. The third question relates to calculation of depreciation. The sum of Rs. 1,48,000 was admittedly received from the State of West Bengal as subsidy. On an examination of facts, however, the Tribunal ha....