1984 (2) TMI 65

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.... V. MANOHAR J.-This is an application under s. 256(2) of the I.T. Act, 1961. The petitioners have prayed that the Tribunal be directed to state the case and refer to this court the following two questions of law as set out in paragraph 5 of the application : " (1) Whether, on the facts and in the circumstances of the case, the claim of gratuity liability estimated by the assessee at Rs. 1,26,49....

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....me-tax Act, 1961, had not been fulfilled ? " The relevant assessment year in the present petition is 1974-75. The company's assessment proceedings were completed by the concerned ITO by an order dated February 20, 1976, and the net loss was determined at Rs. 4,17,450. Thereafter, the ITO issued a notice under s. 154 of the I.T. Act, 1961, on the basis that there was a mistake apparent on the fa....

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....t the provisions of s. 40A(7) are not applicable in the present case because the assessee has not made any provision in respect of its liability for the payment of gratuity. The assessee has contended that it is, however, entitled to claim the said amount as deduction under other provisions of the I.T. Act, 1961. This deduction is claimed by the assessee on the ground that its liability to pay gra....