1990 (10) TMI 126

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.... follows : " The learned Commissioner of Income-tax (Appeals) ought to have found that the disallowance of Rs. 90,536 made by the Income-tax Officer is the amount paid by the assessee towards the recognised gratuity fund in excess of the amount payable as per Rule 103 of the Income-tax Rules and hence the disallowance was in order. " The assessee provided in its account a sum of Rs. 2,13,006....

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....ecognised gratuity fund on actuarial basis and such contribution was admissible within the provisions of sec. 40-A(7) as also under section 36(v) of the IT Act. He also found that only the incremental liability had been provided and, therefore, it was not to be restricted to 8 1/3% of the current year's salary. In this view of the matter he deleted the disallowance. The revenue is aggrieved. 3.....

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....e IT Rules would not apply. He had also furnished before us a complete statement detailing the manner in which the gratuity contribution has been worked out on actuarial basis for the assessment year 1982-83 and had also furnished before us a statement of gratuity provision for the assessment year 1981-82 as made out to the ITO and submitted on a comparison of the above two statements that it woul....

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....phold the contention of the learned representative for the assessee. Rule 103 of the IT Rules is as follows : " 103. The ordinary annual contribution by the employer to a fund shall be made on a reasonable basis as may be approved by the Commissioner having regard to the length of service of each employee concerned so, however, that such contribution shall not exceed 8 1/3% of the salary of eac....