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2017 (6) TMI 1342 - ITAT PUNEDisallowance made in respect of payment to unapproved gratuity fund - Assessee paid sum by way of contribution towards gratuity to a trust which was created for the benefit of employees of the assessee company - AO noted that the said gratuity fund scheme was not approved by the CIT - AO and the CIT(A) thus, invoked the provisions of section 36(1)(v) of the Act to disallow the said claim of assessee as the amount was not paid to an approved gratuity fund - HELD THAT:- As relying on Tata Iron & Steel Co. Ltd. [1975 (2) TMI 22 - BOMBAY HIGH COURT] amount which has been paid by the assessee towards an unapproved gratuity fund is duly allowable as deduction under section 37(1) of the Act though the assessee is not entitled to claim the deduction under section 36(1)(v) of the Act. Accordingly, the ground of appeal No.1 raised by the assessee is allowed.
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