TWININGS (P) LTD.,KOLKATA vs. D.C.I.T.,CIRCLE-4(2), KOLKATA

ITA 391/KOL/2019Status: HeardITAT Kolkata08 January 2024AY 2014-15Bench: SHRI SANJAY GARG (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)10 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee should not suffer due to the prolonged delay in the approval process by the authorities. Considering the Supreme Court's decision in Textool Co. Ltd. and the nature of gratuity as salary, the claim was allowed.

What were the facts?

The assessee claimed a deduction for contributions made to a LIC Group Gratuity Scheme. The Assessing Officer disallowed the claim as the fund was not approved by the Commissioner. The CIT(A) upheld the disallowance, also rejecting the alternate claim under Section 37(1).

What were the issues?

Whether contributions to an unapproved gratuity fund are allowable as a deduction, and if not under Section 36(1)(v), whether they are allowable under Section 37(1).

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, “A” BENCH KOLKATA

Before: SHRI SANJAY GARG & SHRI GIRISH AGRAWAL

For Appellant: Shri Siddharth Agarwal, Advocate
For Respondent: Shri B. K. Singh, JCIT, Sr. DR
Pronounced: 08.01.2024

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of Ld. CIT(A)-18, Kolkata vide order no. CIT(A), Kolkata-18/10794/16- 17/Circle-4(2)/18-19 dated 26.12.2018 passed against the assessment order by DCIT, Circle-4(2), Kolkata u/s.143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 29.12.2016, for AY 2014-15. 2. Assessee is in appeal challenging the disallowance of Rs.12,14,720/- on account of contribution made by it to LIC Group Gratuity Scheme (in short “LICGGS”) u/s. 36(1)(v) of the Act. In the alternate, assessee has claimed a deduction for this contribu

The order continues below.

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