1986 (2) TMI 8

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.... 1972-73, the accounting period ending on January 1, 1972. During the course of the accounting period, the West Bengal Payment of Gratuity Act came into force in the year 1971, under which the assessee was liable to make payment of gratuity to its employees for the past years and also make provision for payment of gratuity to its employees. It provided for sum of Rs. 65,86,985 as its liability for....

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....le in respect of the past services was an allowable deduction in computing the total income for the assessment year 1972-73 ?" The point of law is well settled. The West Bengal Payment of Gratuity Act came into force in the year 1971 during the accounting period relevant to the assessment year 1972-73. In respect of this year, the assessee was liable to pay gratuity to its employees not only in....

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....19A of the Income-tax Rules, 1962, the Tribunal was right in holding that borrowed money should be included in the 'capital employed' for calculating the relief under section 80J ?" This question is covered by the decision of the Supreme Court in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. In view of this decision of the Supreme Court, it must be held that borrowed money cannot be....