JUDGMENT

R.L. Gulati, J. - u/s 256(1) of the income tax Act, 1961, the income tax Appellate Tribunal, Allahabad, has submitted a statement of the case inviting the opinion of this court on the following question of law:

"Whether, on the facts and in the circumstances of the case and on a true construction of the Government notification dated April 27, 1961, it could be held that no liability accrued to the assessee-company for the payment of the gratuity for the assessment year under appeal?"

The assessment year involved is 1962-63, the relevant accounting period being the year ending on September 30, 1961. The assessee claimed to deduct a sum of Rs. 1,37,811 in the computation of its net income liable to income tax. This amount, according to the assessee represented the sum which he would be required to pay to its workmen on account of gratuity. The claim was disallowed by the income tax Officer, the Appellate Assistant Commissioner of income tax and finally by the income tax Appellate Tribunal. The main ground for disallowing the claim, as set out in the order of the Tribunal, is that in the relevant accounting year no ascertained liability arose for payment of gratuity. When the r

Click Here to Read the rest of this document