EXIMPO TEA LIMITED,KOLKATA vs. ITO, WARD - 4(4), KOLKATA

The only issue is to be decided is as to whether the CIT(A) is justified in confirming the addition made by the Assessing Officer u/s 40A(7) of the Act.

Heard both parties and perused the materials available on record. The ld. AR submits that the assessee claimed deduction on account of gratuity payable for Assessment Year 2012-13 to the extent of Rs.37,33,773/- and the said sum is become payable, is evident from Profit and Loss A/c and Balance sheet for Financial Year 2011-12 relevant to Assessment Year 2012-13. The Assessing Officer

It is evident from the impugned order that the assessee submitted that the deduction is allowable in computing business income in respect of payment of gratuity is payable during the previous year. As pointed out by the ld. AR, no discussion or reference was ever made by the Assessing Officer and it is also evident that the CIT(A) arbitrarily confirmed the addition made by the Assessing Officer by observing that in the absence of any cogent material. We find that the assessee made submissions before the CIT(A) and supporting the same filed computation of total income, auditors’ report, balance sheet, profit & loss account and notes of financial statement before us. In view of the same as there was no finding by the Assessing Officer to the effect denying the deduction, therefore, we deem it proper to remand the matter to the file of Assessing Officer for his fresh consideration. The assessee is at liberty to file evidences, if any, in support of its claim. Thus ground raised by the assessee is allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 03.04.2019.