Supreme Court of India
Bombay Dyeing And Manufacturing Co. ... vs Commissioner Of Wealth Tax, Bombay on 25 August, 1971
Equivalent citations: AIR1975SC756, [1974]93ITR603(SC), AIR 1975 SUPREME COURT 756, 1975 TAX. L. R. 149
Author: K.S. Hegde
Bench: A.N. Grover, K.S. Hegde
JUDGMENT K.S. Hegde, J.
1. The question referred for the opinion of the High Court under Section 27(1) of the Wealth Tax Act, 1957 is:
Whether in the circumstances of the case, in computing "net wealth" as defined in Section 2(m) of the Wealth Tax Act or in assessing the net value of the assets under Section 7(2) of the said Act, the liability of the Company in respect of gratuity in terms of the Industrial Court Awards for the benefit of its employees in respect of their periods of service upto the valuation date, should be allowed as a deduction.
2. The High Court following the decision of this Court in Standard Mills Co. Ltd. v. Commr. of Wealth Tax, Bombay answered that question in favour of the department. It is not disputed that the said decision governs the facts of this case, but we are asked to have that decision reconsidered by a larger bench in view of the decision of this Court in Metal Box Co. of India Ltd. v. Their Workmen .
3. Metal Box Co. case was a decision rendered under the Bonus Act. In that decision the learned Judges referred to the decision of Standard Mills Co. Ltd. and distinguished the same. In our opinion there is no conflict between the two decisions.
4. For the reasons mentioned above, we see no justification for refer ring this case to a larger bench for reconsideration of the decision in Standard Mills Co. Ltd., . In the result this appeal fails and the same is dismissed with costs.