TaxTMI 
TaxTMI 
2014 (8) TMI 730
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....14, Annexure P.10 raised by the petitioner. 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. The petitioner is a cooperative society registered under the Societies Registration Act, 1860. It is engaged in the business of banking as Cooperative Bank at Yamuna Nagar. The amount of payment/premium of Group Gratuity Scheme of Rs. 2,20,18,280/- was infact the balance of the amount of Group Gratuity Payment with LIC. The petitioner bank having taken the said scheme from LIC in the previous year i.e. Assessment year 2008-09, a premium payment of Rs. 2,85,00,000/- was made to the LIC and an amount of Rs. 64,81,720/- was paid by the LIC out of group Gratuity Scheme to the retiring empl....
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....ded copy of reasons recorded to the petitioner wherein it was stated that the assessee society had created provision for retiring benefits of Rs. 14,20,035/- and group gratuity scheme of Rs. 2,20,18,280/-. Since the provisions of retiring benefits and group gratuity scheme were not deductible under the Income Tax Act, the same were to be disallowed being provisions of unascertained liabilities. Omission to do so resulted in escapement from assessment to the tune of Rs. 2,34,38,315/- in the hands of the assessee. The petitioner submitted reply dated 11.6.2014, Annexure P.10 to the reasons recorded. The Assessing Officer vide order dated 30.6.2014, Annexure P.11 rejected the objections raised by the petitioner. According to the petitioner, th....
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....s created for retiring benefits and Rs. 2,20,18,280/- on account of provisions created for Group Gratuity Scheme. According to the Assessing Officer, the provisions of retiring benefits and Group Gratuity Scheme were not deductible under the Act. The Assessing Officer had recorded the following reasons for reopening the assessment:- "Return of income in this case was filed under section 139(1) of the Income Tax Act, 1961 on 30.9.2009 declaring total income at Rs. 1,59,93,730/-. Assessment under Section 143(3) of the Income Tax Act, 1961 has been framed vide order dated 25.11.2011 at an Income of Rs. 1,59,93,730/- making additions under various heads. Scrutiny of other liabilities forming part of the balance sheet revealed that the assesse....