2011 (9) TMI 750

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....V.Rajan   JUDGMENT   CHITRA VENKATARAMAN, J   The Revenue is on appeal as against the order of the Income Tax Appellate Tribunal. The only question of law raised by the Revenue for the assessment year 1989-90 is as follows:-   "Whether in the facts and circumstances of the case, the Tribunal had enough material and was right in holding that the provisions of Section 40A(7)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the rejection, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) who agreed with the assessee's contention and allowed the appeal.   3. As against the same, the Revenue went on appeal before the Income Tax Appellate Tribunal. It reaffirmed the view of the Commissioner of Income Tax (Appeals); consequently, the appeals were dismissed. Aggrieved by the same, present ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ards an approved gratuity fund, or for the purpose of payment of any gratuity, that has become payable during the previous year. "   5. Section 43B of the Act is a specific provision which speaks about the granting of deduction on actual payment. Thus, while Section 40A (7) of the Act deals with deduction on the provision made, Section 43B of the Act is with reference to the deduction on act....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessee made a provision in respect of the said amount, quantified with reference to the number of persons opting to take advantage of the Voluntary Retirement Scheme. Given the fact that Section 40A(7)(b) of the Act contemplates deduction in respect of the provision made, not only for the purpose of contribution towards the approved gratuity fund, but equally so for the purpose of payment of g....