THE HON'BLE SRI JUSTICE L.NARASIMHA REDDY AND HON BLE SRI JUSTICE CHALLA KODANDA RAM R.C.No.170 of 2000 ORDER: (per Hon ble Sri Justice L.Narasimha Reddy) This reference is made under Section 256 of Income Tax Act, 1961 (for short, Act ) by assessee. applicant is company owned by Government of Andhra Pradesh. For successive assessment years, it has been seeking deduction of gratuity and amount representing fluctuations in foreign exchange. It was also maintaining books of account and assessment was being made by making reference to Section 115J of Act. For Assessment Years 1988-89 and 1989-90, applicant did not mention figures referable to gratuity and amount representing fluctuation in foreign exchange in books of account, for those years. No provision was made for claiming deduction of those two amounts. result was that higher amount of profit was shown excluding these amounts. At stage of assessment, applicant insisted that amounts referred to above, must be deducted from income. Assessing Officer did not agree for that on ground that provision was not made for these two amounts in relevant profit and loss account. matter was carried in appeal before Commissioner of Appeals. appeal was allowed by Commissioner. Aggrieved by that, Revenue carried matter in further appeal to Hyderabad Bench of Income Tax Appellate Tribunal by filing I.T.A.Nos.299/Hyd/92 and 1775/Hyd/92. appeals were allowed by Tribunal through its order dated 25.11.1997. Aggrieved by order in appeal, applicant filed R.A.Nos.77/Hyd/98 and 78/Hyd/98 under Section 256 (1) of Act with prayer to refer following three questions to this Court for answer: 1. Whether on facts and in circumstances of case, Income-tax Appellate Tribunal is justified in coming to conclusion that assessee-company is not entitled to claim deductions towards gratuity liability and extra depreciation on additional cost due to additional liability owing to exchange fluctuations from its profits as per its books while computing book profits u/s.115J of I.T.Act? 2. Whether on facts and in circumstances of case, Income-tax Appellate Tribunal was correct in coming to conclusion that merely because gratuity liability and depreciation were not provided or written off in accounts, assessee-company is not entitled to claim deduction of same in computing book profits while applying provisions of S.115J of I.T.Act? 3. Whether on facts and in circumstances of case, appellant is entitled to deduction of sums of gratuity liability and extra depreciation, as deduction from profits declared by it for arriving at correct amount of book profits as provided under parts (ii) and (iii) to Schedule VI to Companies Act for computing its income chargeable to tax u/s.115J of I.T.Act? Accordingly, reference is made to this Court. Heard learned counsel for parties. questions that are referred to this Court are no doubt important in their purport. However, we decline to answer them for two reasons. first is that company is under liquidation and in spite of notice being issued to Official Liquidator, he did not turn up. second is that answer given, one way or other, is not going to have much impact since company is under liquidation. L.NARASIMHA REDDY, J Date: 02.09.2014 CHALLA KODANDA RAM, J va Hyderabad Allwyn Ltd. v. Commissioner of Income-tax, Hyd