TaxTMI 
TaxTMI 
2021 (1) TMI 199
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the case virtually sitting at Mumbai and submitted that the only issue arises for consideration is the addition of Rs. 17,41,82,013/- deleted by the CIT(A) towards the payment to an unapproved gratuity fund. According to the ld. DR, the payment made to approved gratuity fund alone has to be allowed under section 36(1)(v) of the Income Tax Act, 1961 ('the Act'). In this case, the payment was made to an unapproved fund, therefore, it cannot be allowed. On a query from the bench, what is the nature of the fund and who is managing the fund, the ld. DR submitted that the assessee itself is managing the fund, therefore, it cannot be allowed. 3. On the contrary, Shri M.K. Shah, the ld. Representative for the assessee submitted that the gratu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e money has actually gone out from the hands of the assessee. Therefore, that the money paid towards the gratuity fund would not come to the assessee at any event. Hence, this Tribunal is of the considered opinion that the CIT(A) has rightly deleted the addition made by the Assessing Officer. Moreover, this Tribunal in ITA No. 50/JAB/2012 dated 30.09.2013 allowed similar claim of the assessee for Assessment Year 2007-08. By following the same order, the claim of the assessee for Assessment Year 2008-09 and 2011-12 was allowed. The CIT(A) by following the order of this Tribunal, has allowed the claim of the assessee. Therefore, this Tribunal do not find any reason to interfere the order of CIT(A). Accordingly, the same is upheld. 6. Now com....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... finding by the AO. The funds, even as noted in the earlier part of this order, stand given by the assessee, for management, to three separate reputed Funds, including LIC of India, which was also the fund manager in Textool Co. Ltd. (supra). That the trust is irrevocable, and exclusively for the assessee's employees, is not in dispute. Rather, as it appears from the assessee's pleadings before the first appellate authority, it has not been communicated the reasons for the non-approval of the gratuity fund by the competent authority, pending with it for long. Though that could not be construed as, as stated, deemed approval, it yet causes a serious prejudice to the assessee if its' claim u/s. 36(1)(v) is, for that reason, not allowed. There....