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| The Tax Publishers2021 TaxPub(DT) 0200 (Jab-Trib) INCOME TAX ACT, 1961
Section 36(1)(v)
Where assessee had actually paid the money and money had actually gone out from the hands of the assessee, hence, money paid towards the gratuity fund would not come to the assessee at any event, therefore, CIT(A) had rightly deleted the addition made by AO.
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Business disallowance under section 36(1)(v) - Allowability - Payment to an unapproved gratuity fund -
AO made addition on account of payment to an unapproved gratuity fund. According to department, the payment made to approved gratuity fund alone had to be allowed under section 36(1)(v). In this case, payment was made to an unapproved fund, therefore, it cannot be allowed. Held: It was not in dispute that assessee had actually paid the money. In other words, the money had actually gone out from the hands of the assessee. Therefore, money paid towards the gratuity fund would not come to the assessee at any event. Hence, CIT(A) had rightly deleted the addition made by AO.
Relied:CIT v. Textool Co. Ltd. (2013) 216 Taxman 327 (SC) : 2013 TaxPub(DT) 2118 (SC), Shree Sajjan Mills Limited v. CIT & Anr. (1985) 156 ITR 585 (SC) : 1985 TaxPub(DT) 1362 (SC) and CIT v. Textool Co. Ltd. (2002) 257 ITR 39 (Mad) : 2002 TaxPub(DT) 1155 (Mad-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, JABALPUR BENCH
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