- (1.) Since the issue involved in these three departmental appeals for the successive years and also the cross objections filed by the assessee is common, they have been consolidated and a common order is being passed for the sake of convenience.
(2.) The following common ground for all the three years has been taken up by the department in all the appeals : "1. That, on the facts and in the circumstances of the case, the learned Commissioner (Appeals)I, Calcutta, erred in deleting the following disallowances made by the assessing officer for assessment year 1985-86 : (i) Rs. 35,000 out of salaries, etc. paid to the wives of the directors: (ii) Rs. 3,675 being gratuity', (iii) Rs. 80,000 under section 40A(3) of the Income Tax Act.
(3.) That, on the facts and in the circumstances of the case, the learned Commissioner (Appeals), Calcutta, erred in directing the Deputy Commissioner to delete the following disallowances of the payment of gratuity for the assessment years 1986-87 and 1987-88 respectively, (i) Rs. 3,591 for assessment year 1986-87. (ii) Rs. 29,134 for assessment year 1987-88.;