Guwahati Court September 1996 Judgments

George Williamson (Assam) Ltd. Vs. Commissioner of Income-tax

Court: Guwahati

D.N. Baruah, J. 1. As directed by this court vide order dated April 25, 1994, in Civil Rule No. S1(M) of 1992, the Income-tax Appellate Tribunal has referred the following question under Section 256(2) of the Income-tax Act, 1961 (for short 'the Act'), for the opinion of this court : 'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the order of the Commissioner of Income-tax (Appeals) to the effect that the sum of Rs. 2,18,100 representing provision made for gratuity payable to employees who had retired during the relevant previous year not hit by the provisions of Section 43B of the Act, was not sustainable ?' 2. The facts for the purpose of answering the question may be narrated as follows : The assessee is a company incorporated under the Companies Act, owning tea estates and carrying on the business of tea plantation,manufacture of tea and sale thereof. For the benefit of the employees of the tea garden, the assessee-company ...