TMI Blog2012 (1) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is a banking company and it is registered under the Companies Act, 1956. It is engaged in the business of banking. Coming to the specific, it was found that the assessee had paid a sum of ₹ 30 lakh to the LIC as premium. It was directed to show cause as to why this amount should not be disallowed in view of the provision contained in sec. 43B(f). It was submitted that the issue stands covered by the decision of the Tribunal in its own case for Assessment Year 2006-07. However, the Assessing Officer disallowed the expenditure by mentioning that an appeal has been filed before the Hon ble Delhi High Court against the aforesaid order. 1.2 The matter was agitated before the Commissioner of Income-tax (Appeals)-II, Dehradun. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 2006-07. In view of these decisions, it is urged that the matter may be decided in favour of the assessee. 3. We have considered the facts of the case and submissions made before us. The admitted position is that the issue stands covered by three decisions of the Tribunal for Assessment Years 2004-05 to 2006-07. The matter has been discussed at length in the order for Assessment Year 2004-05. For the sake of ready reference, paragraph 13 of this order is reproduced below:- 13. We have considered the rival submissions. As per the Master Policy taken by the assessee bank, in respect of the liability as an employer, LIC has undertaken to pay the benefits in respect of all the employees (Members of the Scheme) the leave encashment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayments were made by the Assessee company directly to the Life Insurance Corporation the Commissioner (Appeals) and the Tribunal recorded a finding of fact that the payments were deductible. On reference the Hon ble Madras High Court held Merely because the payments were made directly to the L.I.C., the company could not be denied the benefit under section 36(1)(v) of the Income Tax Act, 1961. the Tribunal was right in allowing the deduction of ₹ 5584754-00 being the payment made by the assessee company directly to L.I.C. towards Group Gratuity Fund under section 36(1)(v) of I.T. Act. In the case of Associated Electrical Industries (India) Pvt. Ltd. (supra), the head note reads as under:- Business Expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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