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2016 (11) TMI 794 - HC - Income TaxAllowance of deduction u/s 36(1)(v) - allowance of Gratuity Scheme - Held that:- Assessee is sponsored by UCO Bank, a Government of India Undertaking and duly complied with the conditions laid down for approval under section 36(1)(v). At least the Assessing Officer when this factum was brought to his notice that the assessee has filed copy of the trust-deed, application to the competent authority on September 4, 2000 then even the said letter could have been forwarded to the concerned Commissioner who ought to have taken recourse of either rejecting or approving the Gratuity Scheme created by the assessee. The assessee cannot suffer for the inaction of the Revenue authorities and the Assessing Officer ought not to have disallowed the claim merely because the Commissioner has not granted approval of the Gratuity Scheme. Once the assessee fulfils the condition laid down for approval having created a trust with the Life Insurance Corporation of India, and it is not the case of the Revenue that the assessee has not deposited money in terms of creation of the trust, therefore, in our view the Tribunal on such facts is well justified in holding that the claim is just, proper and allowable. A just and reasonable claim deserves to be allowed. We find that both the appellate authorities have found it allowable on the facts found and is essentially a finding of fact based on material and evidence on record.
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