the relevant accounting years ended on 31st march 1974 and 31st march 1973 respectively.
the assessee thereafter preferred a second appeal to the tribunal.
from the judgment and order dated 29.11.1982 of the madhya pradesh high companyrt in misc.
pending the determination of such an actuarial valuation the assessee had made a provision of rs.
out of this amount provision had been made during these years to the tune of rs.
the break up of this liability was as follows for periods ending on 31st march 1972 31st march 1973 and 31st march 1974 assessees liability was worked out at rs.
2000000 during the relevant accounting year.
companypanys practice was to account for gratuity on cash basis as and when paid.
at the time of the filing of the return of income for the assessment year 1973 74 the assessee added back this provision for gratuity amounting to rs.
the assessee preferred an appeal but the same was dismissed by the commissioner of income tax appeals .
2000000 against the total accruing liability till the date of the preparation of the balance sheet.
6431286.
4859431 which was the actuarial determination of liability arising under the payment of gratuity act 1972 in the relevant accounting year.
civil case number 240 263 of 1980.
the related assessment year in appeal number4221 of 1984 is 1974 75.
civil appellate jurisdiction civil appeal number.
2000000 and claimed the total liability of rs.
in the assessment of 1974 75 the tribunal referred to the facts and observed that increased liability of rs.
for the assessment year 1974 75 the assessee companypany sought to deduct a sum of rs.1837727 towards the amount of gratuity payable to its employees and worked out actuarially.
soli j. sorabjee p.h.
the companypany had made a provision in its books of account for payment of gratuity to its employees to the extent of rs.
the assessee preferred an appeal against the income tax officer order before the appellate assistant companymissioner.
in appeal number4222 of 1984 the assessment year is 1973 74.
manumberar and s. ganesh for the appellant.
1571855 and directed the income tax officer to allow this sum as a liability.
parekh p.k.
s. desai gauri shankar ant miss a subhashini for the respondents.
the judgment of the companyrt was delivered by sabyasachi mukharji j. these appeals by special leave arise from the judgment and order of the high companyrt of madhya pradesh dated 29th numberember 1982 in reference under section 256 1 of the income tax act 1961 hereinafter referred to as the act .
the assessee is a public limited company.
