Cit vs M.M.T.C.
2001 Latest Caselaw 1538 Del

ORDER

Heard.

2. At the instance of the revenue, the following question has been referred for opinion of this court under section 256(1) of the Income Tax Act, 1961 read with section 18 of the Companies (Profits) Surtax Act, 1964:

2. At the instance of the revenue, the following question has been referred for opinion of this court under section 256(1) of the Income Tax Act, 1961 read with section 18 of the Companies (Profits) Surtax Act, 1964:

"Whether the Tribunal has been in error in upholding the Commissioner (Appeals)'s order directing the Surtax Officer to treat the provision of staff gratuity amounting to Rs. 60,00,279 as a reserve for the purpose of computing capital to determine surtax liability in respect of assessment year 1974-75 ?"

Instead of answering the question referred, in our view, it would be appropriate if the Tribunal re-hears the matter, keeping in view the guidelines indicated by the Apex Court in CIT v. Jyoti Ltd. (1996) 219 ITR 388.(SC)

3. Reference is, accordingly, disposed of.

3. Reference is, accordingly, disposed of.