| Case ID |
2bbd04ea-792f-4197-8472-a3ab98247370 |
| Body |
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| Case Number |
I.T.A. No.572/KB of 1983-84 |
| Decision Date |
Mar 15, 1987 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal has allowed the departmental appeal against the decision of the learned Commissioner of Income-tax (Appeals) regarding the deduction of Rs. 1,89,204 claimed by the public limited company as gratuity. The Tribunal concluded that the amount reflected a mere provision and not a determined liability, thus disallowing the deduction except for the amount actually paid during the relevant assessment year. The Tribunal emphasized that without evidence of an agreement with the workers' union regarding gratuity, the claim could not be substantiated. The ruling aligns with previous decisions which established that such provisions do not constitute a permissible deduction under the Income Tax Ordinance, 1979. |
| Summary |
In the case of I.T.A. No.572/KB of 1983-84, the Income Tax Appellate Tribunal addressed the issue of gratuity provisions under the Income Tax Ordinance, 1979. The Tribunal ruled that the provision claimed by the public limited company as a deduction was not valid unless there was evidence of actual payment or an agreement with the workers' union. This decision is significant in understanding the treatment of gratuity expenses in tax assessments and underscores the importance of maintaining proper documentation and agreements in compliance with tax laws. The ruling highlights the distinction between provisions and actual liabilities, setting a precedent for future cases. Keywords such as 'Income Tax Ordinance', 'gratuity deduction', and 'tax assessment' are crucial for SEO optimization in legal contexts. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan, Chairman,
Manzurul Haq, Accountant Member
|
| Lawyers |
Muhammad Farid D.R. for Appellant,
I.N. Pasha for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1987 SLD 100,
1987 PTD 668
|
| Other Citations |
(1982) 46 Tax 4 (Trib),
(1981) 44 Tax 62 (Trib)
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
25
|