1987 (1) TMI 49

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....The following question has been, at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench, in terms of section 256(1) of the Income-tax Act, 1961. "Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim 'the balance' gratuity under section 40A(7)(b)(ii) of the Income-tax Act in the assessment year 1975-76 ? " The....

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....mpleted after the Officer allowed deduction of a sum of Rs. 93,398.84 which he considered to represent the provision relating to that accounting year. The Officer further allowed deduction of a sum of Rs. 85,040.67 being the amount actually paid by the assessee towards gratuity in respect of that year. The Officer, however, disallowed the assessee's claim to deduct a total sum of Rs. 6,99,188 repr....

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.... for in respect of the years in question. The Tribunal held that the total amount of Rs. 6,99,188 claimed by the assessee represented what was provided for the three accounting years in question, i.e., 1972-73 to 1974-75, and that after taking into account what had been already allowed in the earlier orders of the Officer, the assessee was entitled to deduction of the balance gratuity amount. I....

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....-74, it is entitled to claim deduction in terms of sub-clause (ii), that is, in accordance with and subject tothe conditions mentioned thereunder. To derive the advantage of that subclause in respect of a provision made in the accounting year 1973-74, such provision ought to relate to the liability of that year. In fact, deduction for that year was allowed by the Tribunal and other authorities to ....