TMI Blog1982 (10) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein. By the said trust, it was intended that such provisions shall, inter alia, be made by means of assurances on the lives of employees which assurances shall be effected with the Life Insurance Corporation of India and the trustees shall apply for and effect with the Corporation such assurances on the lives of existing and future members as may from time to time be necessary in accordance with the rules thereof. A copy of the said trust deed is at pages 24 to 32 of the paper book filed by the assessee. The rules of the aforesaid fund are at pages 33 to 48 of the paper book filed by the assessee. On29-12-1975, the assessee made an application to the Commissioner,New Delhi-I (by filing with the said application the aforesaid trust dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct') are not satisfied in the present case. ggrieved by the said disallowance, the assessee brought the matter by way of appeal before the Commissioner (Appeals) who has allowed the claim to the extent of Rs. 10,40,360 by observing that there is substantial compliance with the terms of the provisions of section 40A(7). 9. In the appeal before the Tribunal, the arguments by the departmental representative are on the same lines as were given by the ITO/IAC in his direction under section 144B for negativing the claim of the assessee for the deduction of the aforesaid amount of Rs. 10,40,360. It was also urged that the actuarial liability of Rs. 10,40,360 was not quantified as on31-3-1976when the aforesaid amount of Rs. 13,65,458 was paid. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 18 to 21 of the paper book. It is, therefore, urged on the basis of this evidence that the payment was made by the assessee to the trustees of MMTC's Group Gratuity-cum-Term Insurance Scheme and they, in turn, on account of the aforesaid arrangement got the amount paid through the assessee to the LIC. The payment was thus made by the assessee to the said fund. The learned counsel for the assessee, Mr. Tandon, further urged that section 40A(7)(a) was not attracted in the present case. The assessee before us has not made any provision for the payment of the sum by way of contribution towards the approved gratuity fund or for the purpose of payment of any gratuity that has become payable during the year under consideration. The present case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was computed not prior to 31-3-1976 but in the course of assessment proceedings will not disentitle the assessee to have the deduction of the aforesaid lower amount, if in law it is entitled to have it. The objection of the revenue in this behalf is also negatived. 13. We now come to section 40A(7)(a) which is in the following terms : "Subject to the provisions of clause (b), no deduction shall be allowed in respect of any provision (whether called as such or by any other name) made by the assessee for the payment of gratuity to his employees on their retirement or on termination of their employment for any reason." As rightly argued by the learned counsel for the assessee, Mr. Tandon, section 40A(7)(a) has no application in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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