2025 (6) TMI 463

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....dent : Shri Kavan Limbasiya, Sr DR ORDER PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order of the learned ADDL/JCIT(A), Indore (in short 'the CIT(A)') dated 24.06.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2019-20. 2. The Assessee has taken followi....

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....timation u/s 143(1) of the Act was completed by the Assessing Officer on 02.06.2020 after making disallowance of Rs. 17,99,900/- u/s 43B of the Act, on account of disallowance of provision for unfunded gratuity. 4. Aggrieved by the action of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A) who dismissed the appeal of the assessee by observing as under:- "Ground No....

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.... on their retirement or on termination of their employment for any reason (2) Nothing in clause (a) shall apply in relation to any provision made by the assessee for the purpose of payment of a sum by way of any contribution towards an approved gratuity fund, or for the purpose of payment of any gratuity, that has become payable during the previous year Explanation. - For the rem....

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.... is established that it has made provision of gratuity for actually paying it to the eligible employees, then deduction of such provision of gratuity can be allowed. But, in present case, the appellant has not shown such intention or purpose. The appellant has made provision in form of unfunded Gratuity. It has created provision of gratuity without earmarking separately the funds for gratuity paym....