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2020 (4) TMI 583 - AT - Income TaxDisallowance payment made to gratuity fund u/s.36(1)(v) - gratuity fund was unapproved by the Learned Pr. CIT after 9 years - HELD THAT:- Assessee had made particular application for granting of approval on 14.08.2008. However, the approval was only granted by the Pr. CIT on 06.03.2017. CIT has taken almost 9 years to grant approval, in our view by any stretch of reasoning, the time taken for granting the approval cannot be justified by the Revenue - lapse/delay on the part of the Pr.CIT for not deciding the approval application of the assessee within a stipulated period of time, cannot be the ground for not allowing the claim of deduction u/s.36(1)(v) to the assessee - assessee should not suffer loss on account of inaction and lethargic attitude of the Revenue in granting the approval - deduction u/s.36(1)(v) cannot be denied on account of failure or delay in passing order of the application of the assessee on 14.08.2008 - though the order of granting approval was passed on 06.03.2017, the same should have made effective from the date of 14.08.2008 or at least effective from 01.04.2009 because in our view 6 months time is sufficient for considering process of application for approval u/s.36(1)(v) - Decided in favour of assessee.
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