TMI Blog2016 (1) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... - CIT(A)allowed the claim - Held that:- This issue in assessee's own case for the assessment year 2006-07 in favour of the assessee wherein held there is no dispute as to the fact that assessee has applied for approval of the scheme on 31.03.1981. The A O has not brought any material on record that the approval to the scheme is not allowed. Therefore the scheme cannot be taken as not approved. The assessee can’t be made to suffer for inaction of the department. Considering these facts, this Bench in assessee’s own case of A.Y. 1996-97 & 1997-98 itat allowed the claim of the assessee - Decided in favour of assessee Contribution to State Renewal Fund - CIT(A) treated as allowable expenditure - Held that:- This issue is covered in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 307/JP/2009 in the case of ACIT vs. M/s. Rajasthan State Seeds Corporation Ltd. Jaipur. (ii) Order dated 16-07-2010 in ITA No. 919/JP/2009 in the case of ACIT vs. M/s. Rajasthan State Road Development Construction Corporation Ltd., Jaipur 2.3 We have heard the rival contentions and perused the materials available on record. As regards Ground No. 1 of the Revenue, we find that ITAT Jaipur Bench has decided this issue in assessee's own case for the assessment year 2006-07 in favour of the assessee vide its order dated 21- 08-2009 in ITA No. 307/JP/2009 by following observations. 5. Briefly stated, the assessee claimed prior period expenses of ₹ 1,96,917/- out of which the A O disallowed ₹ 1,95,203/- by holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd even after a long lapse of time, the approval has not been granted. Thus the assesee s group gratuity scheme has not been approved. As per section 36(1)(v), sum paid for gratuity funds is deductible if such payment is made towards contribution to approved gratuity fund. Further, section 40A (7) provides that a provision for gratuity fund will not be admissible, unless it is towards contribution to approved gratuity fund. The AO also relied upon the case of CIT V/s Electra (Jaipur) Pvt. Ltd. 282 ITR 598 (All). Accordingly, he made disallowance of ₹ 7,89,745/- in respect of contribution to group gratuity scheme. 3. The ld. CIT (A) deleted the disallowance of ₹ 7,89,745/- by following the decision of ITAT, Jaipur Bench decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision:- 5. We have considered the submissions of the parties. We find that the issue under consideration is squarely covered by the decision of ITAT in case of Rajasthan State Seed Corporation Ltd. Vs. ACIT in ITA No.233/JP/2009 dated 25.5.2009 which is based upon Hon'ble Rajasthan High Court judgments in the cases of CIT Vs. Shri Rajasthan Syntex Ltd. 221 CTR 410 (Raj) and CIT Vs. Rajasthan Spinning and Weaving Mills Ltd. 274 ITR 465 (Raj). The facts of Hon'ble Rajasthan High Court judgment in case of Jodhpur Cooperative Marketing Society which is relied by the AO is distinguishable as in that case the amount was provided for the benefit of the employees. Since, in the present case also the amount was set apart not for shar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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