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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI D.S. SUNDER SINGH
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -1, Coimbatore, dated 24.06.2016 and pertains to assessment year 2012-13.
The only issue arises for consideration is disallowance of contribution made by the assessee towards Gratuity Fund constituted under Life Insurance Corporation of India Group Gratuity Scheme.
No one appeared for the assessee inspite of issue of notice.
Therefore, we heard Ld. Departmental Representative and proceeded to dispose the appeal on merit.
Shri Supriyo Pal, the Ld. Departmental Representative, submitted that the assessee has contributed `11,39,861/-, during the year under consideration, towards LIC Gratuity Fund. Since the LIC Gratuity Fund was not approved by Commissioner of Income Tax, the Assessing Officer disallowed the claim of the assessee under Section 40A(7) of the Income-tax Act, 1961 (in short 'the Act'). The assessee has also claimed deduction to the extent of `6,69,105/- in respect of contribution made to Gratuity Fund for the assessment year 2011-12. Totally the Assessing Officer disallowed `18,08,966/-. Since the Fund was not approved, the CIT(Appeals) confirmed the disallowance.
We have considered the submission of the Ld. Departmental Representative and also perused the material available on record.
The assessment year under consideration is 2012-13. During the year under consideration, admittedly, the assessee contributed only `11,39,861/- and balance `6,69,105/- relates to assessment year 2011-12. Since the appeal of the assessee for assessment year 2011-12 is not before this Tribunal, this Tribunal cannot entertain any claim in respect of the contribution made for the assessment year 2011-12. Therefore, we confine ourselves only to the contribution made to the extent of `11,39,861/-.
Admittedly, the contribution was made to the Gratuity Fund constituted by Life Insurance Corporation of India. It is not in dispute that the assessee has paid the money. In other words, the money to the extent of `11,39,861/- has gone out of the hands of the assessee and it will not come back to the assessee. In those circumstances, this Tribunal is of the considered opinion that there is no justification in disallowing the claim of the assessee. This Tribunal is of the considered opinion that when the amount has gone out of the hands of the assessee and there is no doubt that money will not come back to the assessee, disallowance made by the Assessing Officer cannot be sustained. Accordingly, the orders of the authorities below are set aside to the extent of contribution made by the assessee towards LIC Gratuity Fund at `11,39,861/- and the Assessing Officer is directed to allow the claim of the assessee only to the extent of `11,39,861/-. Since the balance amount of `6,69,105/- relates to assessment year 2011-12, this Tribunal could not go into the issue since no appeal is pending before this Tribunal for that assessment year.
With the above observation, the appeal of the assessee is partly allowed.