SUHAS CHANDRA SEN, J.

( 1 ) AT the instance of the Commissioner of Income-tax, Central-V, Calcutta, the following two questions of law have been referred by the Tribunal under Section 256 (1) of the I. T. Act, to this court. "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the Income-tax Officer to allow the claim of Rs. 19,71,126 for deduction on account of liability for payment of gratuity based on actuarial valuation ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to agitate in the quantum appeal the ground in respect of the order passed by the Income-tax Officer levying interest under Section 215 of the Income-tax Act, 1961?"

( 2 ) THIS case relates to the assessment year 1974-75 for which the accounting period is the year ended 31st March, 1974.

( 3 ) THE first question relates to the deduction of gratuity liability made on actuarial basis. The ITO did not allow the deduction on the ground that there was no accrued gratuity liability. On appeal, the AAC confirmed the order of the ITO.

( 4 ) ON further appeal, the Tribunal held that since th

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