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2005 (7) TMI 55 - HC - Income TaxSection 40A(7) - unascertained liability - "Whether Tribunal was legally correct in upholding the provisions of section 40A(7) applicable in the assessee's case even though the assessee has claimed unascertained liability being provision only not actually paid?" - Respectfully following the principles laid down by the apex court in Shree Sajjan Mills Ltd., we are of the considered opinion that the amount paid was nothing else but gratuity and merely because the scheme has been mentioned as Gratuity Insurance Assurance Scheme it will not make any difference. The provisions of section 40A(7) of the Act would be attracted as the fund has not been recognised by the Department. The Tribunal was, therefore, not justified in upholding the deletion of the addition. Accordingly, we answer the question referred to us in the negative, i.e., in favour of the Revenue and against the assessee
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