- (1.) IN this reference under S. 256(1) of the IT Act, 1961, for the asst. yrs. 1984-85, 1985-86 and 1986-87 the following common question of law has been referred to this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the gratuity of Rs. 2,14,220, Rs. 57,889 and Rs. 1,24,884 pertaining to the asst. yrs. 1985-86, 1986-87 and 1984-85 in question were not allowable deductions in computing the total income of the assessee ?"
(2.) SHORTLY stated, the facts leading to this reference are that the assessee is a limited company and derives income from manufacture and sale of electric fans, electric motors, dynamos, etc. The assessee paid the gratuity of Rs. 1,24,884, Rs. 2,14,220 and Rs. 57,889 for the asst. yrs. 1984-85, 1985-86 and 1986-87 respectively to the retiring staff and adjusted the same against the provision. The Assessing Officer disallowed the claim of the assessee on actual payment on the ground that by the order of the Tribunal the assessee has been allowed the provision and the matter is pending before the Hon'ble High Court. Therefore, the assessee cannot be allowed the provision as well as the actual payment made by it. The disallowances made by the Assessing Officer have been confirmed by the CIT(A) on appeal.
(3.) THE assessee preferred appeals before the Tribunal and the Tribunal maintained the finding of the CIT(A) by observing as under : "3. The issue is covered against the assessee in ITA No. 198/Cal/87 and ITA Nos. 277 to 281/Cal/82. The claim of the assessee was disallowed on the ground that the provision is being allowed in the case of the assessee. Following the reasoning given in the aforesaid orders of the Tribunal the finding of the CIT(A) is maintained." ;