SAMBHAR SALTS LTD Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF RAJASTHAN
SAMBHAR SALTS LTD
COMMISSIONER OF INCOME TAX
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S.C.Agrawal, J. -
(1.)THIS application has been moved under s. 256(2) of the IT Act, 1961 (the Act) whereby the petitioner has prayed that the Tribunal may be directed to draw a statement of the case and refer the question of law arising from the order of the Tribunal dt. 27th July, 1981 in IT Appeal No. 610 (Jp.) of 1978-79.
(2.)WE have heard Ranka, the Id. Counsel for the petitioner and Surolia, the Id. Counsel for the non-petitioner.
During the asst. yr. 1973-74, the petitioner had claimed deduction of a sum of Rs. 853 towards expenses incurred in the Circuit House maintained by the petitioner which amount was disallowed by the ITO. The petitioner further claimed a deduction of Rs. 32,579 on account of provision for gratuity under s. 40A(7)(b)(ii) of the Act, and in pursuance of s. 37(1) of the Act. But the said claim of the petitioner was also disallowed. The petitioner claimed a deduction of a sum of Rs. 2,072 for the bonus payable to the employees, but the said deduction was not allowed by the ITO. The petitioner further claimed a sum of Rs. 65,580 on account of provision for payment of leave salary and pension to the employees of the petitioner, out of which the ITO allowed the claim of Rs. 60,355 and the aforesaid disallowance of a sum of Rs. 60,355 was upheld by the ITO was well as by the Tribunal.
We have perused the order passed by the ITO, the ITO and the Tribunal as well as the order passed by the Tribunal on the application filed by the petitioner under s. 256(1). In our view, the following question of law arise from the order dt. 27th July, 1981 passed by the Tribunal :
"1. Whether the assess-company is entitled to a deduction of Rs. 853 on account of expenditure incurred by it in connection with the Circuit Hose under s. 37(4) of the IT Act ? 2. Whether the Tribunal was right in law in disallowing a sum of Rs. 23,579 on account of gratuity under s. 40A for the IT Act ? 3. Whether the assessee-company is not entitled to claim deduction of Rs. 2,072 as payment of bonus, which was deducted out of salary of the employees but could not be paid as the employee was not available at the relevant period ? 4. Whether under the provisions of s. 37(1) of the IT Act, the assessee company was not entitled to the deduction of the amount of Rs. 60,355 on account of provision for pension of its employees".
The application is, therefore, allowed and the Tribunal is directed to state the case and refer the question mentioned above for the opinion of there Court.
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