TMI Blog2017 (6) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... oved gratuity fund is duly allowable as deduction under section 37(1) of the Act though the assessee is not entitled to claim the deduction under section 36(1)(v) of the Act. Accordingly, the ground of appeal No.1 raised by the assessee is allowed. - ITA No.2275/PUN/2014 - - - Dated:- 16-6-2017 - MS. SUSHMA CHOWLA AND SHRI ANIL CHATURVEDI, JJ. Appellant by: S/Shri C.H. Naniwadekar and R.R. Pethe Respondent by: Shri Yogesh Kamat, Addl. CIT ORDER SUSHMA CHOWLA, J. This appeal filed by the assessee is against the order of CIT(A)-V, Pune, dated 16.09.2014 relating to assessment year 2011-12 against order passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The assessee has raised the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer noted that the said gratuity fund scheme was not approved by the Commissioner of Income Tax. As per provisions of section 36(1)(v) of the Act, any sum paid by the assessee as an employer by way of contribution towards approved gratuity fund is allowable as deduction. The assessee was thus, show caused as to why the said amount should not be disallowed as the gratuity scheme was not approved till date of assessment proceedings. In response thereto, the assessee pointed out that as per provisions of section 40A(7) of the Act, no deduction is allowable in respect of any provision made by the assessee for the payment of gratuity to his employees. However, where the assessee had made actual payment of the said amount and had not made any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13, relating to assessment year 2008-09, order dated 31.05.2013. 8. The learned Departmental Representative for the Revenue placed reliance on the order of CIT(A). 9. We have heard the rival contentions and perused the record. The issue which arises by way of ground of appeal No.1 is the payment of gratuity to a fund formulated by the assessee for the benefit of its employees. The assessee claims that it had paid sum of ₹ 18,79,516/- to LIC on account of gratuity fund. The assessee had applied for recognition of the said gratuity fund before the Commissioner of Income Tax, which has not been approved till date. The Assessing Officer and the CIT(A) thus, invoked the provisions of section 36(1)(v) of the Act to disallow the said c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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