TaxTMI 
TaxTMI 
2012 (10) TMI 664
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....as erred in confirming the addition of Rs. 70 lakhs on account of gratuity provision without appreciating the fact that the assessee has made actual payment before the due date of filing of return." 2. Ground No. 1 - After hearing both the parties we find that during assessment proceedings the Assessing Officer noticed that the assessee-bank had made a provision for a sum of Rs. 2.00 lakhs towards education fee paid to HARCO. The same was disallowed because the same was only a provision. 3. Before the ld. CIT(A) it was submitted that the assessee has already incurred an expenditure of Rs. 1,33,884/- towards education fees. It was submitted that the assessee was following mercantile system of accounting and since it was statutory oblig....
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....of Assessing Officer and contended that since actual expenses has been incurred in the next year the same has been disallowed. 7. We have heard the rival submissions carefully. We find that Registrar Cooperative Societies had enhanced the rates of contribution to various categories by the various types of Societies vide their communication dated 22.10.2002 vide which various Socieities have been directed as under: "From The Registrar Cooperative Societies, Haryana Chandigarh To All the Assistant Registrars Cooperative Societies in the State of Haryana Memo No. 8/3/2002-E&T(II)13761-792 Dated Chandigarh the 22.10.2002 Subject: Contribution of Education Fund by Cooperative Societies under Rule 73 of Har....
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....nizations who have remitted the Education fund for the year 2002-03 have to release the balance on the basis of the above enhanced rates. While calculating the rate of contribution of Education Fund payable to Harcofed no Co-operative Society shall adjust the profit of the year in its accumulated losses. 3. The Education Fund shall be paid by the Co-operative Societies under the provisions of section 87 of the Haryana Cooperative Societies Act, 1984 read with Rule 73 of the Haryana Co-operative Societies Rules, 1989 and shall be charged on the funds of the Co-operative Socieites which shall be recoverable in a manner provided under section 110 of the said Act. 4 The above instructions are in suppressions of the previous instructions i....
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.... the Assessing Officer disallowed the same. 10. Before the ld. CIT(A) it was submitted that the Assessing Officer has himself noted that the assessee has filed the details of payment of gratuity to employees as well as LIC. It was contended that actual payment was made to LIC against the provisions made. The assessee was first creating a provision then making the payment. The details of payment were furnished as under: "Date Amount 1.6.2006 Rs. 20.00 lacs 7.6.2007 Rs. 20.00 lacs 18.9.2007 Rs. 40.00 lacs In addition the appellant also made payment of Rs. 15,50,591/- during the year under consideration. " 11. The ld. CIT(A) after examining the submissions, did not find force in the same and confirmed the disallowance.....