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TMI Blog2016 (9) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2012-13 made to LIC towards Group Gratuity Scheme is disallowable U/s 40A(7) as the scheme is not approved and thereby confirming the disallowance made by A.O. He has further erred in not considering the fact that amount is paid under LIC Group Gratuity Scheme for which application dated 16/05/1996 moved to Commissioner for approval is not rejected and the issue is otherwise covered by various decisions of the Court but not considered/inferred correctly by him." 2. All the appeals of the assessee have been heard together, therefore, for the sake of convenience, common order is being passed. 3. The assessee has submitted an application for irrevocable trust on 13/05/1996 named as "Man Structural Pvt. Ltd." Employees Group Gratuity Assu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld CIT(A). The ld CIT (A) vide order dated 12/10/2015 has also dismissed the appeal of the assessee by observing as under: "3.1.2 (i) I have carefully perused the submission of the assessee, the assessment order and the material placed on record. During the appellate proceedings, it was submitted by the AR that the written submissions filed by him in ITA No. 338/2014-15 for A.Y. 2009-10 may also be considered in the instant case under consideration. A detailed order has been passed by me in ITA No. 338/2014-15. As the facts of instant case under consideration are identical with the facts in ITA No. 338/2014-15, following my decision of even date in ITA No. 338/2014-15, it is held that the A.O. was justified in making disallowance of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the assessee has submitted that same is required to be upheld. 6. On the other hand, the ld. DR has submitted that the no steps were taken by the assessee after filing the application for grant of the approval in view of Section 40A of the Act since 1996 after the alleged application dated 13/5/1996. The ld DR has also brought to our notice that if the approval is nor granted by the revenue, then the assessee within its statutory right to file the appeal before the appropriate authorities in accordance with the rules framed under Income Tax Rules, 1962. It was submitted that the assessee was casual and callous in pursuing its application for grant of approval. It was further submitted that the condition made in Section 40A (7) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of the above contribution made to the gratuity fund. In the similar facts and circumstances, the Coordinate Bench in the case of Narasus Spinning Mills Vs ACIT (2016) 67 taxmann.com 277 relying upon the judgment of the Hon'ble Supreme Court in the case of CIT Vs Textool Co. Ltd. (supra) has held as under:- "8. Having considered the matter in the light of the background facts, we are of the opinion that there is no merit in the appeal. True that a fiscal statute is to be construed strictly and nothing should be added or subtracted to the language employed in the Section, yet a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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