TMI Blog2002 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act, 1961?" - In our opinion, the Commissioner of Income-tax (Appeals) as well as the Tribunal have correctly held that merely because the payments were made directly to the LIC, the company could not be denied the benefit under section 36(1)(v) and the amount had to be credited in favour of the assessee. Both the Commissioner (Appeals) as well as the Tribunal have correctly read the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.55,84,754 being the payment made by the assessee-company directly to the LIC towards group gratuity fund under section 36(1)(v) of the Income-tax Act, 1961?" It seems that the assessee-company had made this payment to the Life Insurance Corporation of India (in short "LIC") as the said sum was insured by the LIC. There is no denial that the Textool Company Employees Group Gratuity Fund is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Life Assurance Scheme on behalf of the assessee-company's group gratuity fund only. This is what the Commissioner of Income-tax (Appeals) has recorded in his order. "In other words, the insurance policy had been taken in the name of the approved gratuity fund only and this fund is also shown as the payee in the policy. It is also confirmed by the appellant-company in its letter dated Novembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess losing the real intent on the part of the Legislature. Ultimately, the Commissioner of Income-tax (Appeals) has specifically recorded as follows: "Even the Assessing Officer does not appear to deny that the contribution in the instant case amounting to Rs.55,84,754 is positively towards the approved gratuity fund. On the facts the contribution cannot be linked to any other fund or scheme. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) as well as the Tribunal have correctly read the law and have correctly relied upon the aforementioned Supreme Court judgment. In our opinion, since the finding of fact is that all the payments made were only towards the group gratuity fund, there would be no question of finding otherwise. Therefore, it will have to be answered that the Tribunal was right in allowing the deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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