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2018 (1) TMI 956 - AT - Income TaxDisallowing contribution to gratuity fund - the gratuity fund was not approved on the date of contribution - whether as the approval was in process and hence, the contribution was allowable as a deduction - allowability u/s 37 or 36 - effective date - Held that:- Notwithstanding the effective date of approval set out by the Commissioner in his approval order, the approval granted to the employees’ gratuity trust must be treated as effective from 1st January 2010, and, on that basis, the contribution made by the assessee to the said trust must be held to be admissible as deduction under section 36(1)(v). The assessee thus succeeds in the appeal. The alternate plea of the learned counsel which was so emphatically argued before us, is anyway only fit to be noted and rejected since, as clearly provided by Section 37(1) itself, only such expenses can be considered for deduction under section 37(1) which are not “expenditure of the nature described in sections 30 to 36”. Once the provisions of contribution to gratuity fund are specifically covered by Section 36(1)(v), as is the admitted position on the facts of the case, section 37(1) can obviously not have any application. - Decided in favor of assessee.
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