The judgment of the court was delivered by
HEGDE J.--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 welth ' 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 or gratuity in terms of the industrial court
awards for the benefit of its employees in respect of their periods of service
up to the valuation date, should be allowed as a deduction ? "
The High Court following the decision of this court in
Standard Mills Co. Ltd. v. Commissioner of Wealth-tax 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 Company of India
Ltd. v. Their Workmen.
Metal Box Company 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.
For the reasons mentioned above, we see no justification
for referring this case to a larger Beach for re-consideration of the decision
in Standard Mills Co. Ltd. In the result this appeal fails and the same is
dismissed with costs.
Appeal dismissed.
