FUJIYA RESTAURANT,DELHI vs. DCIT CIRCLE 52(1), DELHI

ITA 3820/DEL/2026Status: DisposedITAT Delhi27 July 2026AY 2020-215 pages
AI SummaryAllowed

What were the facts?

The assessee, Fujiya Restaurant, filed an appeal with a delay of 158 days due to issues with tax audit reports and return filing. The appeal challenged the disallowance of gratuity payment of Rs. 2,98,953/-.

What did the Tribunal hold?

The Tribunal held that the disallowance of gratuity payment was illegal. The payment was made directly to the employee and, following judicial precedents, should be allowed as a business expenditure.

What were the issues?

Whether gratuity paid directly to an employee, not through an approved fund, is allowable as a deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(v),Section 37,Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F”, NEW DELHI

Before: SHRI VIMAL KUMAR & SHRI MANISH AGARWAL

For Appellant: Shri Satyajeet Goel, Advocate
For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 21.07.2026Pronounced: 27.07.2026

PER VIMAL KUMAR, JM:

The application for condonation of delay of 158 days in filing appeal and the appeal filed by the assessee is against order dated 26.08.2025 of Ld. Commissioner of Income Tax (Appeal) / NFAC, Delhi (hereinafter referred to as ‘the CIT(A)’) u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of assessment order dated 23.08.2022 of Ld.

P a g e | 2 Fujiya Restaurant

Assessing Officer / Assessment Unit (hereinafter referred to as ‘the AO’) u/s 143(3) r.w.s. 144B of the Act for Assessment Year 2020-21. 2. Ld. Authorized Representative for appellant/assessee submitted that there i

The order continues below.

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