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| The Tax Publishers2020 TaxPub(DT) 1045 (Pune-Trib) INCOME TAX ACT, 1961
section 36(1)(v)
Assessee's claim was basically denied on account of non approval of scheme by CIT, however, subsequently the Commissioner vide Order, dated 21-9-2016 had granted approval to gratuity scheme and it was effective from 27-3-2012, being the date falling in concerned assessment year. In such a situation, assessee was eligible for deduction.
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Business deduction under section 36(1)(vi) - Allowability - Gratuity contribution to the unapproved fund - CIT granted approval subsequently with retrospective effect
Assessee contributed Rs. 85,000 in Group Gratuity Scheme of LIC and claimed it as deduction under section 36(1)(v) on payment basis. AO noticed that assessee had filed application for getting approval from Commissioner as per relevant provision of Act much prior to concerned assessment year, but had not got requisite approval. Thus, AO took the view that in the absence of approval for requisite scheme, contribution to scheme could not be allowed under section 36(1)(v). Held: Assessee's claim was basically denied on account of non approval of scheme by CIT, however, subsequently the Commissioner vide Order, dated 21-9-2016 had granted approval to gratuity scheme and it was effective from 27-3-2012, being the date falling in concerned assessment year. In such a situation, assessee was eligible for deduction.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
INCOME TAX ACT, 1961
Section 32(1)(ii)
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