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2023 (12) TMI 630 - AT - Income TaxDisallowing expenditure on account of gratuity representing amount actual paid to an approved gratuity fund of employer's contribution - assessee’s case is that an amount has been paid as gratuity before the due date in filing of return of income to approved gratuity fund accordingly the said amount was allowable u/s 36(1)(v) r.w.s 43B - HELD THAT:- As per clause (b) of section 40A(7) of the Act allows deduction any provision made by assessee/employees for the purpose of payment of a sum by way of contribution towards and Approved Gratuity Fund. It is noted that assessee’s case is that it has made contribution towards approved gratuity fund and therefore prima-facie the claim of the assessee need to be allowed since there is no fetter u/s 40A(7). DR brought to our notice that no verification of the fact has been under-taken by AO as to whether the assessee has made the actual payment on or before the due date of filing of return of income as well as whether the assessee has made payment to the approved gratuity fund which need to be verified by the AO. Thus we set aside the impugned order of Ld. CIT(A) and restore this issue back to the file of AO for the limited purpose of verification whether sum paid to the approved gratuity fund on or before the due date of filing of return; and the AO after verification find the claim to be correct to allow it. Disallowing deduction u/s 80G - CSR expenditure - HELD THAT:- Since the facts have not been verified by the AO (whether donees enjoyed certificate u/s 80G of the Act, the amount of donation etc need to be verified), the AO to do so and after the ratio of the aforesaid judicial precedent (supra) is applied to the facts of the case, to allow the same in accordance to law. Appeal of the assessee is allowed for statistical purposes.
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