Metal Box Co. of India Ltd. v. Their Workmen

Parag Milk Foods Ltd, Pune vs. Assistant Commissioner of Income-Tax, Circle - 4, Pune

In the result, the Appeal of the Assessee is Partly Allowed

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.177/Pun/2022 िनधा"रण वष" / Assessment Year :2016-17 Parag Milk Foods Ltd., The Assistant Awasari Phata,Village Manchar, Vs Commissioner Of Income Tal - Ambegaon, Tax, Circle-4, Pune. Dist-Pune – 411503. Pan: Aabcp 0425 G Assessee/ Appellant Respondent /Revenue Assessee By Shri Suhas Bora – Ar Revenue By Shri M.G.Jasnani – Dr Date Of Hearing 24/04/2023 Date Of Pronouncement 21/06/2023 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Directed Against The Order Of Ld.Commissioner Of Income Tax (Appeal)[Ld.Cit(A)], Pune-11 Dated 04.02.2022 Emanating From Assessment Order Under Section 143(3) Of The Act Dated 26.12.2018 For A.Y.2016-17. The Assessee Has Raised The Following Grounds Of Appeal: “1. The Learned Cit(A) Has Erred In Confirming The Action Of The Assessing Officer Of Making An Addition Of Rs.1,15,71,588/- On Account Of Disallowance Of Deduction U/Sec.80Ia Of The Act On The Ground That The Assessee Has Not Complied With The Conditions Which Are Necessary To Claim Deduction U/Sec.80Ia Of The Act & Failed To Furnish Any Concrete Evidence To Prove That The Parag Milk Foods Ltd., [A]

…ecision, we find that reference is made to the decision of Hon’ble Bombay High Court in Tata Iron & Steel Co. Ltd. Vs. D.V. Bapat, ITO (1975) 101 ITR 292 (Bom) and the judgment of Hon'ble Supreme Court in Metal Box Company of India Ltd. Vs. The Workmen (1969) 73 ITR 53 (SC), wherein it has been held that the amount paid towards unapproved gratuity fund can be deducted under section 37(1) of the Act, though not under section 36(1)(v) of the Act. Following the ratio laid down by the jurisdictional High Court, we hold that the amount which has been paid by the assessee towards an unapproved gratuity fund is duly all…