2002 (2) TMI 41

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....estion referred to us is as follows: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in allowing the deduction of Rs.55,84,754 being the payment made by the assessee-company directly to the LIC towards group gratuity fund under section 36(1)(v) of the Income-tax Act, 1961?" It seems that the assessee-company had made this payment to the Life Insur....

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....gestion that the initial contribution of Rs.50 lakhs as also the premium of Rs.5,57,943 was paid on behalf of the assessee and was credited to the Group Gratuity Life Assurance Scheme on behalf of the assessee-company's group gratuity fund only. This is what the Commissioner of Income-tax (Appeals) has recorded in his order. "In other words, the insurance policy had been taken in the name of....

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.... hold that merely because the payment was made directly to the LIC, the section was violated would be making violence to the language of the section and in the process losing the real intent on the part of the Legislature. Ultimately, the Commissioner of Income-tax (Appeals) has specifically recorded as follows: "Even the Assessing Officer does not appear to deny that the contribution in the in....

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....e directly to the LIC, the company could not be denied the benefit under section 36(1)(v) and the amount had to be credited in favour of the assessee. Both the Commissioner (Appeals) as well as the Tribunal have correctly read the law and have correctly relied upon the aforementioned Supreme Court judgment. In our opinion, since the finding of fact is that all the payments made were only towards t....