Bombay Dyeing and Manufacturing Co. Ltd. vs Commissioner of Wealth Tax, Bombay

K.S. Hegde, J.—The question referred for the opinion of the High Court u/s 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 u/s 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.

The High Court following the decision of this Court in Standard Mills Co. Ltd. Vs. Commissioner of Wealth-tax, Bombay City, 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. Vs. Their Workmen, .

Metal Box Company of India Ltd. Vs. Their Workmen, was a decision rendered under the Bonus Act. In that decision the learned Judges referred to the decision of Standard Mills Co. Ltd. Vs. Commissioner of Wealth-tax, Bombay City, 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 refer ring this case to a larger bench for reconsideration of the decision in Standard Mills Co. Ltd. Vs. Commissioner of Wealth-tax, Bombay City, . In the result this appeal fails and the same is dismissed with costs.