1989 (2) TMI 10

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....ns under section 256(2) of the Income-tax Act, 1961, the Revenue seeks a direction to the Tribunal to refer the following questions of law for the opinion of this court: T. C. P. No. 561 of 1986: For the assessment years 1977-78 and 1978-79 : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in allowing the entire claim of gratuity liab....

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.... in allowing the entire claim of gratuity liability as a deduction while computing the total income of the assessee for the assessment years 1977-78 and 1978-79 ?" T.. C. P. No. 563 of 1986 : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in allowing the entire claim of gratuity liability as a deduction while computing the total inco....

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....of 1986, the first question in T. C. P. No. 563 of 1986 and the only question in T. C. P. No. 14 of 1988 are concerned, we are of the view that the Tribunal was right in the view it took. Irrespective of whether the services were rendered by the employees to the assessee or to the erstwhile private transport companies, the liability of the assessee to pay gratuity was undoubtedly related to the nu....

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....ce put in by them under the erstwhile private transport companies as well as the Corporation. There is, therefore, no question of the liability for the payment of gratuity being bifurcated as referable to the rendering of service by the employees under the private transport companies prior to the taking over and under the assessee-corporation after the take over. Under the terms of the take over, ....