Sabyasachi Mukherjee, J. - (1.) The statement of the case relates to the asst. yr. 1969 -70 and the question which has been referred to us is as follows : Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing the claim of the assessee for Rs. 31,698 u/s 37 of the IT Act, 1961, relating to the asst. yr. 1969 -70?
(2.) The assessee is a limited company in which it was stated that the Government of West Bengal had substantial shares. During the accounting year under reference the assessee claimed expenses in respect of contribution to gratuity fund for Rs. 31,698. The ITO rejected this claim on the ground that the claim was inadmissible in view of the provisions of s. 36(1)(v) of the IT Act, 1961. The ITO held that the claim could not be made u/s 37 (1) of the Act.
(3.) The assessee appealed before the AAC. The AAC confirmed the view taken by the ITO. He, however, allowed the claim of the assessee to the extent of Rs. 4,047 because this claim was with reference to the year 1968. The assessee carried the matter further.;