SUPREME COURT OF INDIA

Before:- B.N. Kirpal and A.P. Misra, JJ.

Civil Appeal No. 22 of 1989. D/d. 10.2.1998.

Peria Karamalai Tea & Produce Co. Ltd. Coimbatore - Appellant

Versus

Commissioner of Income Tax, Cochin - Respondent

Income Tax Act, 1961 Section 40A(7)(b)(ii) Deduction - Provision in respect of gratuity not made in accounting year relevant to AY 1975-76 - Deduction not allowable in AY 1975-76.

[Para ]

ORDER

B.N. Kirpal, J. - The High Court has answered the question of law which was referred to it in favour of the Revenue by coming to the conclusion, on interpreting Section 40-A(7)(b)(ii) of the Income Tax Act, that the appellant was not entitled to claim deduction of Rs. 11,96,413 which had been allowed by the Tribunal, because it had not made provision for the said amount in the accounting years relevant to the respective assessment years. In respect of Assessment Year 1975-76, with which the High Court was concerned, it was found that the said sum of Rs. 11,96,413 was not in respect of the accounting year relevant to Assessment Year 1975-76 and, therefore, was not allowable as a deduction.

2. We do not find any infirmity in the decision of the High Court and, therefore, this appeal is dismissed with no order as to costs.

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