1989 (7) TMI 81

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.... is a reference under section 256(1) of the Income-tax Act, 1961. The following five questions have been referred for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, there was material on record justifying the Tribunal's finding that the assessee- company was maintaining the cash system of accounting ? 2. Whether, on the facts and in the circumstanc....

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....curred by the assessee for gratuity was deductible but the contractual liability incurred by others in favour of the assessee was not includible in the receipts?. 5. Whether the Tribunal was right in directing the Income-tax Officer to accept the result as disclosed by the account books on the ground that the assessee has followed a method of accounting from which profits are correctly deducibl....

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....n the finding that the disputed amount related to gratuity of the immediately preceding year and that the system of accounting followed by the assessee was not cash but hybrid, and so far as gratuity was concerned, the system was mercantile. On appeal filed by the assessee, the view taken by the Income-tax Officer was not upheld. The Income-tax Appellate Tribunal has found that even in the past, t....

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....authority, which has been endorsed by the Tribunal, is that the amount of gratuity was paid during the year and further that the system of accounting was cash. Learned standing counsel was unable to point out any material on which the findings recorded by the Income-tax Appellate Tribunal about the system of accounting and expenditure relating to gratuity could successfully be assailed. In view....