TMI Blog2021 (1) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... uity fund would not come to the assessee at any event. Hence, this Tribunal is of the considered opinion that the CIT(A) has rightly deleted the addition made by the Assessing Officer. - ITA No.137/JAB/2018 C.O. No.4/JAB/2020 - - - Dated:- 31-12-2020 - SHRI NRS GANESAN, JUDICIAL MEMBER And SANJAY ARORA, ACCOUNTANT MEMBER Appellant by : Shri U.B. Mishra, C.I.T.-DR, Join virtual hearing from Bhopal. Respondent by : Shri M.K. Shah, C.A. ORDER Per NRS Ganesan , JM : This appeal of the revenue and cross appeal by the assessee are directed against the order of Commissioner of Income Tax (Appeals)-1, Jabalpur [for short, the CIT(A)] and pertains to Assessment Year 2015-16. 2. Shri U.B. Mishra, ld. Departmental Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue. 4. We have considered the rival submission on either side and also perused the material available on record. From the assessment order itself, it appears that the payments were made to SBI Life Insurance, Life Insurance Corporation and Star Union Diachi. These funds were managed by third parties and not by the assessee. This is obvious from the assessment order itself, therefore, the contention of the DR that the funds were managed by the assessee itself is contrary to the facts on record. 5. Now the question arises for consideration is when the assessee paid gratuity funds to SBI Life Insurance, Life Insurance Corporation and Star Union Diachi, whether such payment can be allowed or not? It is not in dispute that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down by it in Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585 (SC), i.e., that the principle of strict construction, applicable to taxing statutes, yet does not oust a reasonable construction, interpreting sec. 36(1)(v) of the Act, held that it was manifest from a bare reading thereof that the real intention behind the provision was that the employer should not have control over the funds of the irrevocable trust created exclusively for the benefit of the employees, upholding the decision reported at [2002] 257 ITR 39 (Mad). The Assessing Officer, on this decision being cited before him, states, without pointing out the reason/s therefor, that the same is not squarely applicable to the assessee, making his order, to that extent, vagu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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