TaxTMI 
TaxTMI 
1987 (1) TMI 68
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....of the Income-tax Act, 1961 (hereinafter referred to as " the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court: " (1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the gratuity payable at Rs. 33,059 to employees of the assessee in the electricity unde....
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....rding to that scheme, the assessee was debiting each year in the books of account the amount of liability to pay gratuity on account of the services of the employees for that year. In respect of the assessment year 1975-76, the assessee contended that the accrued liability towards payment of gratuity was Rs. 33,059, which was provided for in the account books and the assessee, therefore, claimed t....
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....ot be allowed unless the conditions referred to in that section were satisfied. The Tribunal further held that even if the provisions of section 40A(7) of the Act were applicable, the case of the assessee was not covered by the provisions of sub-clause (i) of subsection (7)(b) of section 40A of the Act. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the....
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....ver is provided for future use by the assessee out of the gross profits of the year of account for payment of gratuity to employees on their retirement or on the termination of their services would not be allowed as deduction in the computation of profits and gains of the year of account. The provision of clause (a) was made subject to clause (b). The embargo is on deductions of amounts provided f....