KALPETTA ESTATES LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE two revision cases relate to two separate assessment years 1984-85 and 1985-86 dealing with the assessee on the rolls of the Inspecting Assistant Commissioner of Agricultural Income-tax and Sales Tax (Special), Ernakulam.

(2.) THE proceedings arise out of a notice under Section 75 of the Agricultural Income-tax Act, 1991, dated November 4, 1992. THE notice records the following undisputed factual position. THE final assessments for the assessment years 1984-85 and 1985-86 were completed by two separate orders dated January 31, 1990. At that time for the assessment year 1984-85, the total agricultural income and the net income were fixed at Rs. 28,29,249 and Rs. 18,89,390, respectively. Similarly, for the assessment year 1985-86 it was fixed at Rs. 26,88,130.

(3.) THE assessee filed a reply dated November 23, 1992 (annexure B). THE assessee specifically contended that the proposal to disallow the claim as it was not supported by actuarial valuation, is not tenable. THE assessee specifically contended that the claim is not to be understood as a provision but has to be understood as contribution according to law (Payment of Gratuity Act, 1972), to an approved gratuity trust in regard to the statutory liability in accordance with the provisions of the Payment of Gratuity Act, 1972.