Section 36(1)(v) of the Income Tax Act

Income-tax Act, 2025: ss.29, 30, 31, 32

Section 36(1)(v) falls under section 36 of the Income-tax Act, 1961, which corresponds to section 29 (Deductions related to employee welfare), section 30 (Deduction on certain premium), section 31 (Deduction for bad debt and provision for bad and doubtful debt) and section 32 (Other deductions) of the Income-tax Act, 2025.

Read section 29 of the 2025 ActRead section 30 of the 2025 ActRead section 31 of the 2025 ActRead section 32 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 36(1)(v) is CIT v. Textool Co. Ltd. (216 Taxmann 327), cited in 29 of the 124 judgments on BharatTax that turn on this section.

Leading authorities on Section 36(1)(v)

CIT v. Textool Co. Ltd.
216 Taxmann 327 · 2013 · Supreme Court
29
citing judgments

Payments made by an employer directly to the LIC towards an employees' group gratuity fund are allowable as a deduction under Section 36(1)(v) of the Income Tax Act, 1961, provided the employer has no control over these funds.

385 ITR 592 (Kar. H.C.) 13. CIT v. VMD Mills P. Ltd.
434 ITR 671 · 2021 · High Court
8
citing judgments
Assam Tea House v. CIT
25 Taxmann.com 93 · 2012 · High Court
5
citing judgments
Pr. CIT v. English Indian Clays Ltd.
89 Taxmann.com 134 · 2018 · High Court
4
citing judgments

Judgments on Section 36(1)(v)

M/S.Kerala State Co-Op Agricultural & Rural Dev Bank Ltd, Trivandrum vs. The ITO WD-2(1), Trivandrum

ITA 581/COCH/2018[2013-14]Status: DisposedITAT Cochin07 Feb 2019AY 2013-14

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Jose JacobFor Respondent: Smt.A.S.Bindhu, Sr.DR
Section 80PSection 80P(2)(a)

M/S.Kerala State Co-Op Agricultural & Rural Dev Bank Ltd, Trivandrum vs. The ITO WD-2(1), Trivandrum

ITA 580/COCH/2018[2009-10]Status: DisposedITAT Cochin07 Feb 2019AY 2009-10

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Jose JacobFor Respondent: Smt.A.S.Bindhu, Sr.DR
Section 80PSection 80P(2)(a)

M/S.Kerala State Co-Op Agricultural & Rural Dev Bank Ltd, Trivandrum vs. The ITO WD-2(1), Trivandrum

ITA 579/COCH/2018[2008-09]Status: DisposedITAT Cochin07 Feb 2019AY 2008-09

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Jose JacobFor Respondent: Smt.A.S.Bindhu, Sr.DR
Section 80PSection 80P(2)(a)

Assistant Commissioner of Income Tax, Circle-5(1), Visakhapatnam vs. Brandix India Apparel City Private Limited, Visakhapatnam

In the result, the appeal of the revenue and the cross objections of the assessee are dismissed

ITA 485/VIZ/2018[2009-10]Status: DisposedITAT Visakhapatnam25 Jan 2019AY 2009-10

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.485/Viz/2018 (निर्धारण वर्ा/ Assessment Year: 2009-10) The Asst. Commissioner Of Vs. M/S Brandix India Apparel Income Tax City Private Ltd. Circle-5(1) Plot No.18, Biacpl, Sez Visakhapatnam Pudimadaka Road, Atchutapuram Mandal Visakhapatnam [Pan : Aaccb6569L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection No.5/Viz/2019 Arising Out Of I.T.A.No.485/Viz/2018 (निर्धारण वर्ा/ Assessment Year: 2009-10) M/S Brandix India Apparel City Vs. The Asst. Commissioner Of Private Ltd. Income Tax Plot No.18, Biacpl, Sez Circle-5(1) Pudimadaka Road Visakhapatnam Atchutapuram Mandal Visakhapatnam [Pan : Aaccb6569L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से/ Revenue By : Smt. Suman Malik, Cit Dr निर्धाऩरती की ओर से/ Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 23.01.2019 25.01.2019 घोर्णध की तधरीख/Date Of Pronouncement :

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Smt. Suman Malik, CIT DR
Section 139(1)Section 36(1)(v)

Baran Kendriya Sahakari Bank Ltd, Baran vs. Assistant Commissioner of Income Tax, Cirlce-2, Kota

In the result, appeal of the assessee is allowed

ITA 723/JPR/2018[2013-14]Status: DisposedITAT Jaipur19 Dec 2018AY 2013-14

Bench: Your Honour.

For Appellant: Shri Deepak Sethi (CA)For Respondent: Shri Ashok Khanna (JCIT)
Section 36Section 40A(7)(a)

Shiva Industrial Security Agency Gujarat Pvt. Ltd., Surat vs. The Income Tax Officer, Ward-4(2), Surat

In the result, ITA No.2527/Ahd/2017 is allowed, and ITA

ITA 2528/AHD/2015[2011-12]Status: DisposedITAT Surat13 Nov 2018AY 2011-12

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Appellant: Shri Nirmal Somani, CAFor Respondent: Smt.Smitha V. Nair, Sr.DR
Section 139Section 143(3)Section 147Section 148Section 36Section 36(1)(v)Section 40

Shiva Industrial Security Agency Gujarat Pvt. Ltd., Surat vs. The ACIT, Circle-4, Surat

In the result, ITA No.2527/Ahd/2017 is allowed, and ITA

ITA 2527/AHD/2015[2006-07]Status: DisposedITAT Surat13 Nov 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Appellant: Shri Nirmal Somani, CAFor Respondent: Smt.Smitha V. Nair, Sr.DR
Section 139Section 143(3)Section 147Section 148Section 36Section 36(1)(v)Section 40

M/S Sundaram Infotech Solutions Limited (Merged With Sundaram Finance Limited), Chennai vs. ACIT Corporate Circle 6 (2), Chennai

In the result, the assessee’s appeal is allowed

ITA 1227/CHNY/2018[2007-08]Status: DisposedITAT Chennai25 Sept 2018AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. No. 1227/Chny/2018 "नधा"रणवष"/Assessment Year : 2007-08

For Appellant: Shri. Saroj Kumar Parida, AdvocateFor Respondent: Shri G.D. Jayanthi Angayarkanni, JCIT
Section 36(1)(v)Section 40A(7)

Assistant Commissioner of Income Tax, Circle-1, Eluru vs. The District Cooperative Bank Limited, Eluru

In the result, appeals of the revenue as well as the cross objections filed by the assessee are dismissed

ITA 292/VIZ/2018[2013-14]Status: DisposedITAT Visakhapatnam20 Sept 2018AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.291 & 292/Viz/2018 (धििाारण िर्ा/ Assessment Year: 2012-2013 & 2013-14 Respectively) The Acit, Vs. The District Cooperative Circle-1 Central Bank Ltd. Eluru Ramachandra Rao Pet Eluru, West Godavari Dist. [Pan : Aadft3506D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection Nos.74 & 75/Viz/2018 (Arising Out Of I.T.A. Nos.291 & 292/Viz/2018 Respectively) (धििाारण िर्ा/ Assessment Year: 2012-2013 & 2013-14 Respectively) The District Cooperative Vs. The Acit, Central Bank Ltd. Circle-1 Ramachandra Rao Pet Eluru Eluru, West Godavari Dist. [Pan : Aadft3506D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) राजस्व की ओर से/ Revenue By : Shri K.C.Das, Dr निर्ााररती की ओर से/ Assessee By : Shri G.V.N.Hari, Ar सुिवाई की तारीख / Date Of Hearing : 18.09.2018 घोषणा की तारीख/Date Of Pronouncement : 20.09.2018

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri K.C.Das, DR
Section 36(1)(v)Section 40A(7)

Assistant Commissioner of Income Tax, Circle-1, Eluru vs. The District Cooperative Bank Limited, Eluru

In the result, appeals of the revenue as well as the cross objections filed by the assessee are dismissed

ITA 291/VIZ/2018[2012-13]Status: DisposedITAT Visakhapatnam20 Sept 2018AY 2012-13

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.291 & 292/Viz/2018 (धििाारण िर्ा/ Assessment Year: 2012-2013 & 2013-14 Respectively) The Acit, Vs. The District Cooperative Circle-1 Central Bank Ltd. Eluru Ramachandra Rao Pet Eluru, West Godavari Dist. [Pan : Aadft3506D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection Nos.74 & 75/Viz/2018 (Arising Out Of I.T.A. Nos.291 & 292/Viz/2018 Respectively) (धििाारण िर्ा/ Assessment Year: 2012-2013 & 2013-14 Respectively) The District Cooperative Vs. The Acit, Central Bank Ltd. Circle-1 Ramachandra Rao Pet Eluru Eluru, West Godavari Dist. [Pan : Aadft3506D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) राजस्व की ओर से/ Revenue By : Shri K.C.Das, Dr निर्ााररती की ओर से/ Assessee By : Shri G.V.N.Hari, Ar सुिवाई की तारीख / Date Of Hearing : 18.09.2018 घोषणा की तारीख/Date Of Pronouncement : 20.09.2018

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri K.C.Das, DR
Section 36(1)(v)Section 40A(7)

ACIT 3(1)(1), Mumbai vs. Arysta Lifescience India Ltd, Mumbai

Appeal stands allowed for statistical purposes

ITA 559/MUM/2016[2011-12]Status: DisposedITAT Mumbai07 Sept 2018AY 2011-12

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.401/Mum/2016 (िनधा"रणवष" / Assessment Year:2011-12) Arysta Lifescience India Limited Deputy Commissioner Of Income [Formerly Known As Devidayal (Sales) Ltd.] Tax Range-6(2) बनाम/ [Cin U51420Mh1949Plc007856] Rom No.563, 5Th Floor Vs. 123-124,12Th Floor, Mittal Chambers Aaykar Bhavan,M.K.Road Nariman Point, Mumbai-400 021 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aaacd-0557-C (अपीलाथ"/Appellant) (""थ" / Respondent) : & आयकरअपीलसं./I.T.A. No.559/Mum/2016 (िनधा"रणवष" / Assessment Year:2011-12) Assistant Commissioner Of Income Arysta Lifescience India Limited [Formerly Known As Devidayal (Sales) Ltd.] Tax -3(1)(1) बनाम/ [Cin U51420Mh1949Plc007856] Rom No.607, 6Th Floor Vs. 123-124,12Th Floor, Mittal Chambers Aaykar Bhavan, M.K.Road Nariman Point, Mumbai-400 021 Mumbai-400 020 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aaacd-0557-C (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: Dhinal Shah & Shalibhadra Shah, Ld. AR’sFor Respondent: Rajesh Kumar Yadav,Ld.DR
Section 143(3)Section 36(1)(v)Section 37(1)Section 40A(2)(a)

The Assistant Commissioner of Income Tax, Circle-1(1), Guntur vs. The Guntur District Co-Operative Central Bank Limited, Tenali

In the result, the revenue’s appeal for the assessment year 2013-14

ITA 78/VIZ/2018[2014-15]Status: DisposedITAT Visakhapatnam31 Jul 2018AY 2014-15

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.77 & 78/Viz/2018 (धििाारण िर्ा/Assessment Years:2013-14 & 2014-15 Respectively) Acit Vs. The Guntur District Circle-1(1) Cooperative Central Bank Ltd. Guntur Tenali, Guntur [Pan : Aaatt6101H] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri V.Appala Raju, DR
Section 36(1)(v)Section 37(1)

The Assistant Commissioner of Income Tax, Circle-1(1), Visakhapatnam vs. The Guntur District Co-Operative Central Bank Limited, Tenali

In the result, the revenue’s appeal for the assessment year 2013-14

ITA 77/VIZ/2018[2013-14]Status: DisposedITAT Visakhapatnam31 Jul 2018AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.77 & 78/Viz/2018 (धििाारण िर्ा/Assessment Years:2013-14 & 2014-15 Respectively) Acit Vs. The Guntur District Circle-1(1) Cooperative Central Bank Ltd. Guntur Tenali, Guntur [Pan : Aaatt6101H] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri V.Appala Raju, DR
Section 36(1)(v)Section 37(1)

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Progressive Constructions Limited, Hyderabad

In the result, appeal of the revenue is dismissed

ITA 289/HYD/2018[2014-15]Status: DisposedITAT Hyderabad31 Jul 2018AY 2014-15

Bench: Smt P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2014-15 Dy. Commissioner Of Income- Progressive Constructions Vs. Tax, Circle – 16(2), Hyderabad. Ltd., Hyderabad Pan – Aabcp 2274 M (Appellant) (Respondent)

For Appellant: Smt. Geetha ChellappaFor Respondent: Shri Sunku Srinivas
Section 14ASection 36(1)(v)

Oricon Enterprises Ltd, Mumbai vs. ACIT Cen Cir 3(3), Mumbai

ITA 2913/MUM/2015[2007-08]Status: DisposedITAT Mumbai16 May 2018AY 2007-08

Bench: S/Sh. Rajendra & Pawan Singh

For Appellant: Shri Arvind SondeFor Respondent: Shri Manjunath Swamy-CIT-DR
Section 14Section 148Section 254(1)Section 36(1)(v)Section 40A(7)Section 43Section 43B

Poonawalla Investments & Industries Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, both the appeals of the assessee are partly allowed

ITA 250/PUN/2016[2011-12]Status: DisposedITAT Pune28 Feb 2018AY 2011-12

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri R.S. AbhyankarFor Respondent: Ms. Nirupama Kotru, CIT-DR
Section 143(3)Section 14ASection 153CSection 250

Poonawalla Investments & Industries Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, both the appeals of the assessee are partly allowed

ITA 249/PUN/2016[2010-11]Status: DisposedITAT Pune28 Feb 2018AY 2010-11

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri R.S. AbhyankarFor Respondent: Ms. Nirupama Kotru, CIT-DR
Section 143(3)Section 14ASection 153CSection 250

Poonawalla Investments & Industries Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, both the appeals of the assessee are partly allowed

ITA 248/PUN/2016[2009-10]Status: DisposedITAT Pune28 Feb 2018AY 2009-10

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri R.S. AbhyankarFor Respondent: Ms. Nirupama Kotru, CIT-DR
Section 143(3)Section 14ASection 153CSection 250

Poonawalla Investments & Industries Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, both the appeals of the assessee are partly allowed

ITA 247/PUN/2016[2008-09]Status: DisposedITAT Pune28 Feb 2018AY 2008-09

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri R.S. AbhyankarFor Respondent: Ms. Nirupama Kotru, CIT-DR
Section 143(3)Section 14ASection 153CSection 250

Poonawalla Investments & Industries Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, both the appeals of the assessee are partly allowed

ITA 245/PUN/2016[2006-07]Status: DisposedITAT Pune28 Feb 2018AY 2006-07

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri R.S. AbhyankarFor Respondent: Ms. Nirupama Kotru, CIT-DR
Section 143(3)Section 14ASection 153CSection 250