1980 (12) TMI 22

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....KRISHNA ERADI C.--The Kerela Agricultural Income-tax Appellate Tribunal (hereinafter called " the Tribunal "), has, referred to this court under S. 60 of the Kerala Agricultural Income-tax Act, 1950, for short, the Act, the following question of law as arising out of its order dated August 31, 1977, in A.I.T.A. No. 99 of 1976: " Is the Tribunal justified on the facts and circumstances of the ca....

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....any. The parent company, namely, Alanickal Company, was bifurcated with effect from November 1, 1971, pursuant to a compromise arrived at before the company judge of this court. The assessee-company-Palamattom Plantations (P.) Ltd.-was a new company formed as a part of the said process of bifurcation. Under the settlement reached before the company judge, the entirety of Kuttampuzha estate and 9 a....

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....assessee carried the matter in appeal agreed with the aforesaid view taken by the assessing authority, But on second appeal filed by the assessee before the Tribunal, the Tribunal held that since the payment of gratuity had been effected pursuant to the provisions of statute that had come into force in 19 60, s. 5(j) of the Act got attracted and the claim for deduction put forward by the assessee ....

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....assessee was also to take over the liability for payment of the gratuity due to the workmen employed therein under the transferor. The transfer of the Kuttampuzha Estate to the assessee was not as a running concern.. In such circumstances, the liability for the payment of gratuity accepted by the assessee as a part of the arrangement of transfer can be regarded only as a capital charge and no dedu....