TMI Blog2001 (12) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1992-93. It declared an income of Rs.1,16,99,320. The assessee had submitted a scheme of group gratuity to the Commissioner of Income-tax, Patiala. The scheme was approved by the Commissioner vide his letter dated April 23/24 of 1992. The scheme was made effective from February 1, 1992. The assessee paid an amount of Rs.15 lakhs towards the scheme on March 31, 1992, by a cheque in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the present appeal. The solitary contention raised by Mr. R.P. Sawhney, counsel for the Revenue, is that in view of the provisions of section 43B(b), the Tribunal has erred in allowing the deduction. Is it so? Admittedly, the assessee had issued the cheque on March 31, 1992. In pursuance of the cheque, the Life Insurance Corporation had issued a policy with effect from February 1, 1992. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained in the second proviso to section 43B is only calculated to ensure that the deduction shall be admissible if the payment has been made "within 15 days from the due date." The Corporation had accepted the cheque issued by the assessee on March 31, 1992. For reasons which are not on record, the entry regarding the encashment of the cheque was made on April 24, 1992. For this, the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly got the benefit. The Life Insurance Corporation had issued the policy The policy was effective from February 1, 1992. Despite the payment having been made by the assessee and the intended beneficiaries, viz., the employees, having got the benefit, the Revenue wants to deny the deduction to the assessee. This would be grossly unfair and cannot be allowed. No other point has been raised. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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