2012 (11) TMI 20

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.... erred in fact and in law in confirming the action of the Addl. CIT, Bharuch Range, Bharuch ['the AO"'] in disallowing contribution of Rs.7,81,722/- made to gratuity fund u/s. 40A(7) on the ground that the sad fund is not approved despite the fact that the assessee had applied for approval of the trust by way of application dated 29.08.02. 2. The learned CIT(A) erred in fact and in law in confirming action of the Assessing Officer in making addition of Rs.1,13,717/- by way of disallowing proportionate administrative expenses and interest invoking provisions of Section 14A of the Act despite the fact that no expenditure is incurred for earning tax free income." 2. Briefly stated facts are that assessee-company is engaged in the manufacture....

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..... AR submitted that Assessing Officer disallowed the contribution on the ground that the assessee-company is required to get of its gratuity scheme approved by the competent authority. He submitted that it made to application through the AO to Ld. CIT for seeking approval of scheme. Ld. AR drew our attention at page-1 of the paper book, wherein copy of the application addressed to Jt. CIT for approval of the gratuity fund in terms of "Part C" of the aforesaid Schedule to income-tax is enclosed. He submitted after submitting the application on 29-08-2002 the assessee has been making reminder to the concerned authorities to know the outcome of his application but of no avail. He submitted that under the identical facts and circumstances rend....