1995 PLP 204 (PTD)
COMMISSIONER OF INCOME-TAX Versus GARWARE SYNTHETIC BRISTLES
| Citation | 1995 PLP 204 (PTD) |
| Forum / Court | 205 I T R 426 |
| Bench Members | B. P. Jeevan Reddy and S. P. Bharucha, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus GARWARE SYNTHETIC BRISTLES |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1995 PLP 204 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1995 PLP 204 (PTD)?
The case was heard and decided by the 205 I T R 426 bench comprising: B. P. Jeevan Reddy and S. P. Bharucha, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1995 PLP 204 (PTD) (COMMISSIONER OF INCOME-TAX Versus GARWARE SYNTHETIC BRISTLES). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- S.C. Manchanda, Senior Advocate (Sudhir Walia and D.S. Mahra, Advocate with him) for Appellant.
- Nemo for Respondent.
Headnotes / Summary
(Appeal by special leave against the order, dated August 29, 1980, of the Bombay High Court in I.T.A. No.58 of 1980.
Assessment year 1972-73
Provision for gratuity allowable as deduction
Amendment by Finance Act, 1975, riot applicable
Indian Income Tax Act, 1961, Ss.37 & 40-A(7). Subsection (7) was introduced by the Finance Act, 1975, in section 40-A of the Income Tax Act, 1961, with retrospective effect only from April 1, 1973, and does not apply to the assessment year 1972-73. Provision for gratuity made in the accounting period relevant to the assessment year 1972-73 is allowable as business expenditure under section 37.
Judgment & Decree
Subsection (7) was introduced by the Finance Act, 1975, in section 40-A of the Income Tax Act, 1961, with retrospective effect only from April 1, 1973, and does not apply to the assessment year 1972-73. Provision for gratuity made in the accounting period relevant to the assessment year 1972-73 is allowable as business expenditure under section
37. S.C. Manchanda, Senior Advocate (Sudhir Walia and D.S. Mahra, Advocate with him) for Appellant. Nemo for Respondent. This appeal is preferred by the Revenue against an order of the High Court of Bombay rejecting an application under section 256(2) of the Income Tax Act, 1961. By the said application, the Revenue asked the Court to direct the Tribunal to state the following two questions for the opinion of the High Court: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that, in computing the assessee's income for the year 1972-73, the provision for gratuity of Rs.36,831 should be allowed as a deduction? (2) Whether, on the facts and in the circumstances of the case, and having regard to the fact that the entire gratuity liability of Rs.2,51,710 has been allowed as a deduction in the year 1973-74 in accordance with the provisions of section 40-A(7), the Tribunal ought to have held that no deduction by way of provision for gratuity should be allowed for the year 1972-73?" The assessment year concerned is 1972-73. Subsection (7) of section 40-A is not applicable to the said assessment year. Subsection (7) was introduced by the Finance Act, 1975, with retrospective effect from April 1 1973. In other words, subsection (7) applies on and from the assessment year 1973-74. The assessee claimed a deduction of Rs.36,831 on account of the provision made by it for payment of gratuity to its employees for the accounting year relevant to the assessment year 1972-73. The deduction was allowed under section 37 of the Income Tax Act. This was objected to by the Revenue and the aforesaid questions were sought to be raised. We see no error in the order of the High Court refusing to direct the Tribunal to make a reference with respect to the admissibility of the said deduction. The appeal accordingly fails and is dismissed. No costs. M.B.A./292/T.F. Appeal dismissed.