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2018 (12) TMI 1913 - AT - Income TaxDisallowance of payment of Gratuity to the employees - application for approval of gratuity scheme pending - HELD THAT:- The assessee has paid a submission that its application for the approval for the gratuity trust with life insurance Corp of India is pending since 12/02/2013. Several reminders have been placed on record before us submitted to the principal Commissioner of income tax. However, till to date the above trust has not been registered. In such peculiar circumstances where assessee has already done what he could have done and still facing disallowance for no approval of the about trust which is according to the standard format with life insurance Corp of India. In such circumstances, we do not inclined to uphold the disallowances made by the lower authorities despite the fact that approval has not been granted to the gratuity trust of the assessee as per the standard deed entered into with life insurance Corp of India. We set aside this ground of appeal back to the file of the learned assessing officer with a direction to the learned AO and the concerned CIT to examine the application of the assessee and if it is found in accordance with the law to grant the registration so that assessee can get the deduction of the expenditure which assessee is rightfully incurring for the gratuity of the employees of the company. - Appeal of the assessee is allowed for statistical purposes.
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