1990 (8) TMI 85

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....e assessee (Smt. Suman Rathi) filed a wealth tax return declaring her net wealth at Rs. 5,76,500 on June 26, 1976. The Wealth-tax Officer found her wealth to be more than the returned wealth and issued a demand notice in the sum of Rs. 7,295. Against the said order, the assessee went up in appeal which was dismissed on June 21, 1979. The matter was, thereafter, brought to the Income-tax Appella....

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.... Learned counsel for the Department relied on an unreported decision given in D. B. Wealth-tax Reference No. 26 of 1980 (Seth Mukund Das Rathi v. CWT-decided on July 3, 1990, since reported in [1991] 188 ITR 518), and submitted that the controversy involved in the present case is covered by the said judgment. In that judgment, a Division Bench had held that gratuity was a contingent liability and ....

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....sion that the liability of gratuity is an ascertained liability and, therefore, the provision made for payment of the same was deductible. He urged that Standard Mills Co. Ltd. v. CWT [1967] 63 ITR 470 (SC) relied on by the Division Bench in the reference made above was distinguishable. The line of distinction drawn by learned counsel was that the case of a company has to be treated differently fr....