TMI Blog2007 (5) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... t was delivered by S. K. KULSHRESTHA J.— This order shall also govern the disposal of I. T. A. Nos./ 171 of 2007 and 172 of 2007 as common questions have been raised by the Revenue, under section 260A of the Income-tax Act, 1961, (for short "the Act"). The questions raised by the Department read as follows : "(1) Whether the Income-tax Appellate Tribunal was justified in holding that section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n holding that interest has to be paid to the assessee ?" 2 Learned counsel for the appellant contends that gratuity payment was not made by the assessee before the due date with the result the Assessing Officer made an addition of the amount claimed as gratuity payment. This addition was upheld by the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal, but on the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability of the assessee. The assessee, therefore, claimed refund on this amount under the provisions of section 237 of the Act and interest thereon under section 244A(1). Though the Assessing Officer declined the request of the assessee for payment of interest on the said excess amount refunded to the assessee, the Commissioner of Income-tax (Appeals) accepted the claim of the assessee and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which the Department relied for making addition of the sum of Rs. 10,55,762 paid towards gratuity was the delay in payment of the amount and that the amount has been paid beyond the period prescribed therefore. The Central Board of Direct Taxes has condoned the delay with the result it could not be said that the gratuity payment did not qualify for deduction from the income of the assessee. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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