2025 (2) TMI 1434

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....tablished for the benefit of employees of Breach Candy Hospital Trust, i.e., in order to give gratuity benefits to them. In the return of income filed for these two years, the assessee had claimed exemption u/s 10(25)(iv) of the Act. Section 10(25)(iv) of the Act provides exemption of income received by trustees on behalf of an approved gratuity fund. During the course of assessment proceedings, the AO asked the assessee to furnish a copy of approval granted to the gratuity fund by the competent authority. In response thereto, the assessee submitted that it had submitted application dated 23-09-2004 with Ld. CIT/Director (Exemptions) for approval of gratuity fund and did not receive any communication from him thereafter. It was further subm....

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....e that it has filed application in the prescribed form way back in 2004, but did not receive any communication so far. We notice that the assessee has also placed reliance on a decision rendered by Hon'ble Supreme Court (referred above)and contended that the exemption should not be denied. Since exemption u/s 10(25)(iv) is granted to an "approved gratuity fund", we are aware that the tax authorities would always insist upon the production of copy of approval granted to the gratuity fund in order to grant exemption u/s 10(25)(iv) of the Act. However, in the facts of the present case, we notice that the lapse mainly appears to be at the end of the revenue, as per various letters sent by the assessee to the Ld CIT(E) and the AO. We also notice....