1990 (3) TMI 374

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.... of Rs. 1,72,743 transferred to contingency reserve account is not liable to deduction in arriving at the taxable income of the assessee-company ? (b) Whether having regard to the provisions of the Electricity (Supply) Act, 1984 and the provision of the Sixth Schedule hereto the amount of Rs. 1,72,743 transferred to contingency reserve account constitutes income in the hands of the assessee ? (c) Whether the amount covered by the contingency reserve is a diverse of income by reason of overriding obligation created by the statute ? 2. (a) Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in holding that the accrued liability for pensipn valued actuarially was not an....

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....cers, it could not be denied that the liability arose only on retirement or happening of similar event and thereafter the liability continued in the form of actual payment made to the person concerned. It was further held by the Commissioner (Appeals) that the company had not withdrawn its claim to get deduction on the basis of actual claim because, in fact, it had pressed its actual claim in this year also. Under the circumstances, the Commissioner (Appeals) held that it was not open to the company to claim deduction on both the basis. This view was also upheld by the Tribunal holding, inter alia, as follows: "It was, however, admitted that no funds were created for this purpose. The CIT (Appeals) was of the view that though the p....