1993 (8) TMI 57

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.... proper consideration of the bareboat charter agreement dated July 8,1970, between the assessee and Messrs. Hind Shipping Agencies, the owners of the Steam Cargo Vessel 'Vardhini', the Tribunal was right in holding that the payment of a non-refundable amount of Rs. 2,50,000 was capital expenditure ? At the instance of the Revenue: 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the Appellate Assistant Commissioner's order allowing to the assessee-company deduction for the assessee's claim of gratuity liability of Rs: 3,25,000 as against only Rs. 64,000 allowed by the Income-tax Officer for the assessment year 1971-72 ? 3. Whether, on the facts and in the circumstances of the....

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....e Supreme Court in the case of Escorts Ltd. v. Union of India [1993] 199 ITR 43. Following the same, it is answered in the negative, that is, against the assessee and in favour of the Revenue. So far as question No. 1, which is referred at the instance of the assessee, is concerned, learned counsel for the assessee submits that this question is not covered by any binding decision and the same needs consideration. We shall, therefore, deal with the said question and for that purpose set out the facts relevant for determination of the said question. The assessee acquired a steam cargo vessel from Messrs. Hind Shipping Agencies under a bareboat charter agreement dated July 8, 1970. Under the said agreement, the owners chartered to the as....