TMI Blog2010 (8) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal by the Revenue is directed against the order of the CIT(A)-VI, Baroda dated 08-01-2010 for assessment year 2006-07 on the following ground: 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the disallowance of contribution made to group gratuity scheme of LIC of India, being an unapproved fund u/s 40A(7) of the Act. 2. The AO obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the order of ITAT Ahmedabad Bench in the case of Crystal Solvent Pvt. Ltd. (ITA No.655/Ahd/2005) allowed the appeal of the assessee in which it was held that disallowance u/s 40 A(7) of the IT Act cannot be made on the ground of absence of approval of gratuity fund as the deduction was not claimed on account of any provision. 3. The learned DR relied upon the order of the AO and submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (b), no deduction shall be allowed in respect of any provision made by the assessee for payment of gratuity to his employer on their retirement or on termination of their employment for any reason. It is clear from the above provision that section 40A (7) of the IT Act would apply in respect of the provision only. However, in the case of the assessee, the assessee claimed deduction of the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h said payment had been made, had not become payable during previous year Held, yes Whether in absence of such a case made out by revenue, Tribunal was right in holding that grant of approval of gratuity fund was not relevant for purpose of instant case as said deduction was not being claimed on account of any provision and amount of gratuity was an allowable deduction Held, yes . 5. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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