DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1), JABALPUR vs. M/S MADHYANCHAL GRAMIN BANK PODDAR COLONY, SAGAR

ITA 137/JAB/2018Status: DisposedITAT Jabalpur30 December 2020AY 2015-165 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the gratuity funds were managed by third parties like LIC, not the assessee. Since the money had irrevocably gone out of the assessee's hands for the benefit of employees, the CIT(A) was justified in deleting the addition.

What were the facts?

The assessee, Madhyanchal Gramin Bank, made payments to an unapproved gratuity fund. The Assessing Officer added this amount back, but the CIT(A) deleted the addition. The revenue appealed this deletion.

What were the issues?

Whether payments made to an unapproved gratuity fund managed by third parties are deductible under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(v),Section 37(1)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, JABALPUR BENCH, JABALPUR

Before: SHRI NRS GANESAN & SANJAY ARORA

For Appellant: Shri U.B. Mishra, C.I.T.-DR
For Respondent: Shri M.K. Shah, C.A
Hearing: 30/12/2020Pronounced: 31/12/2020

Per NRS Ganesan, JM:

This appeal of the revenue and cross appeal by the assessee are directed against the order of Commissioner of Income Tax (Appeals)-1, Jabalpur [for short, the CIT(A)] and pertains to Assessment Year 2015-16. ITA No. 137/JAB/18 & C.O. 04/JAB/2020 Madhyanchal Gramin Bank 2

2.

Shri U.B. Mishra, ld. Departmental Representative (DR) for the revenue argued 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/

The order continues below.

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