TaxTMI 
TaxTMI 
TaxTMI 
2000 (10) TMI 35
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....ing question has been referred by the Income-tax Appellate Tribunal, Delhi Bench D (in short "the Tribunal"), under section 256(41) of the Income-tax Act, (in short "the Act"), for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in holding that the provision for retrenchment compensation/gratuity of Rs. 35,838 represented an accrued....
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....gement, therefore, regret to inform you that your services will no longer be required with effect from April 30, 1972. This letter which is being served upon you should be considered as one month notice of termination of your service. On the expiry of this notice, you will be paid all your outstanding dues including service compensation, etc. you are, therefore, notified through this notice to sur....
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....sponsibility to pay retrenchment compensation. The assessee could very well have withdrawn the notices before the due date of payment. (ii) Services of the employees were not terminated in the relevant previous year. They were terminated only in the subsequent year. The compensation became payable only at the time of termination of the services". The matter was carried in appeal before the Tribu....
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....ination were issued on March 29, 1972, indicating to the employees about the intention to retrench them from employment. It was not disputed before the authorities that if the assessee decided to do so it could have withdrawn the notices. The notices issued did not create a responsibility to pay retrenchment compensation. In fact compensation is payable at the time of termination of services. Admi....