COMMISSIONER OF INCOME TAX Vs. TUTTAPULLAM ESTATES

JUDGEMENT

(1.) THE asseesee-firm purchased an estate comprising of tea and coffee plantations from one Tuttapullam Tea and Coffee Plantations Private Ltd. on August 21, 1958. THE said Tuttapullam Tea and Coffee Plantations Private Ltd. had earlier in its turn purchased the plantations from one M/s. Bhavani Tea Produce Company on December 22, 1947. After the purchase of the estate by the assessee-firm the workers raised a dispute regarding the gratuity payable to them in respect of the period of their service with the earlier employer, M/s. Bhavani Tea Produce Company. THE said dispute was referred to the Industrial Tribunal, Madras. On December 27, 1958, the Industrial Tribunal passed an order directing the assessee to pay to the. workers Rs. 28,206 as gratuity in respect of the period during which the employees had served M/s. Bhavani Tea Produce Company.

(2.) IN the account year ended March 31, 1961, the assessee-firm debited the said sum of Rs. 28,206 in its accounts under the head "Welfare Expenses" and claimed it as a deduction in the relevant assessment year 1961-62. This claim was disallowed by the INcome-tax Officer on the ground that the gratuity was in respect of a period of service prior to December, 1947, and that in any event the amount was not paid in the year of account relevant to the assessment year 1961-62.

(3.) IT is contended on behalf of the revenue that the Tribunal had no jurisdiction to give relief to the assessee by taking Rs. 28,206 as an allowable deduction, while the original grounds of appeal filed by the assessee in relation to the assessment year 1959-60 did not comprise the question of allowability of the said sum. IT is stated that the subject-matter of appeal before the Tribunal, was limited by the grounds of appeal filed by the assessee and that it is not open to the Tribunal to go beyond the subject-matter of the appeal.