2001 (12) TMI 58

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....livered by JAWAHAR LAL GUPTA J.-On December 30, 1992, the assessee filed it," return for the assessment year 1992-93. It declared an income of Rs.1,16,99,320. The assessee had submitted a scheme of group gratuity to the Commissioner of Income-tax, Patiala. The scheme was approved by the Commissioner vide his letter dated April 23/24 of 1992. The scheme was made effective from February 1, 1992. ....

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.... addition. Aggrieved by the order dated November 28, 2000, passed by the Tribunal, the Revenue has filed the present appeal. The solitary contention raised by Mr. R.P. Sawhney, counsel for the Revenue, is that in view of the provisions of section 43B(b), the Tribunal has erred in allowing the deduction. Is it so? Admittedly, the assessee had issued the cheque on March 31, 1992. In pursuance ....

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....t on account of no fault of its own. It would lead to injustice and an unfair result. The provision contained in the second proviso to section 43B is only calculated to ensure that the deduction shall be admissible if the payment has been made "within 15 days from the due date." The Corporation had accepted the cheque issued by the assessee on March 31, 1992. For reasons which are not on record, t....

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....s gratuity paid to the employees. The assessee has admittedly made the payment. The employees have admittedly got the benefit. The Life Insurance Corporation had issued the policy The policy was effective from February 1, 1992. Despite the payment having been made by the assessee and the intended beneficiaries, viz., the employees, having got the benefit, the Revenue wants to deny the deduction to....