2001 (6) TMI 54

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.... claimed by the assessee under section 28 and/or section 37 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in treating the contribution of Rs. 38,824 to provident fund scheme of Human Resources Organisation Pvt. Ltd. as allowable deduction ?" The relevant assessment year was 1977-78. The assessee had claimed deduction of Rs. 61,962 before the Income-tax Officer on the ground that it was a provision made for gratuity liability. The Income-tax Officer disallowed the claim in view of the provisions of section 40A(7) of the Income-tax Act, 1961. This view was confirmed by the Commissioner (Appeals). Before the Tribunal, the claim was pressed on the gr....

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....e affirmative, against the assessee and in favour of the Revenue. The second question referred at the instance bf the Revenue relates to the contribution of Rs. 38,824 by the assessee to the provident fund scheme of Human Resources Organisation Pvt. Ltd. The assessee had claimed the deduction under the provisions of section 36(l)(iv) of the said Act and in the alternative, claimed it under section 37 thereof. The Income-tax Officer had rejected the claim, but the Commissioner (Appeals) had allowed it. The Tribunal allowed the claim following its earlier decision, in which the claim was fully allowed on an alternative ground that it was an expenditure on account of commercial expediency. It was sought to be contended on behalf of the Depart....