COWASJI AND SONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court:

(2.) THE material facts giving rise to this reference, briefly, are as follows :

(3.) THE Supreme Court has held that amounts set apart by way of provision or by way of a reserve or fund to meet the liability of gratuity as and when it becomes payable would not be deductible allowance or expenditure. In view of this decision of the Supreme Court, our answer to the first question has to be in the affirmative and against the assessee.