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2016 (6) TMI 638 - ITAT HYDERABADDisallowance of the deduction towards provision for gratuity - assessee has not made the said contribution to the gratuity fund through an approved gratuity fund - Held that:- In the case before us, SBI Life is the other insurer as defined in clause (28BB) of section 2 of the I.T. Act and the assessee admittedly has made the payment directly to SBI Life which is registered with IRDA. Admittedly, the assessee obtained the approval of the concerned authority for the gratuity fund w.e.f. 21.03.2011 vide orders dated 23.06.2014. Thus, for the relevant assessment year, the gratuity fund of the assessee was not an approved gratuity fund. The assessee had made payment to SBI Life directly and SBI Life has also accepted the same. Hon’ble Apex Court in the case of CIT vs. M/s. Textool Co. Ltd [2009 (9) TMI 66 - SUPREME COURT ] true that a fiscal statute is to be construed strictly and nothing should be added or subtracted to the language employed in the Section, yet a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and intention of any particular provision of the Act. (See: Shri Sajjan Mills Ltd. vs. Commissioner of Income Tax, M.P. & Anr. [2008 -TMI - 5911 - SUPREME Court]. From a bare reading of Section 36(1)(v) of the Act, it is manifest that the real intention behind the provision is that the employer should not have any control over the funds of the irrevocable trust created exclusively for the benefit of the employees – deduction allowed since the conditions stipulated in Section 36(1)(v) of the Act were satisfied.- Decided in favour of assessee. Disallowance of deduction claimed @ 7.5% of the gross total income under section 36(1)(viia) - Held that:- We find that this issue is now covered in favour of the Revenue and against the assessee by the decision of the Hon’ble High Court of Punjab & Haryana in the case of State Bank of Patiala reported in [2004 (5) TMI 12 - PUNJAB AND HARYANA High Court ] wherein it has been held that it is necessary to make a provision for bad and doubtful debts in the account books in the same previous year in which such provision is claimed as deduction under section 36(1)(viia).- Decided against the assessee
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