Shri Khetivadi Utpann Bazar Samiti, Bhuj V. The Income Tax Officer, Ward 1, GANDHIDHAM

ITA 1186/RJT/2009

• Counselvise Citation: 118624914 RSA 2009
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 21-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA PRABHAKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T.A. NO.1186/RJT/2009 (ASSESSMENT YEAR 2005-06) SHREE KHETIVADI UTPADAN BAZAR SAMITI VS ITO, GANDH IDHAM WD.1 AGRICULTURE PRODUCT MARKET COMMITTEE BHUJ MARKETING YARD, BHID BAZAR, BHUJ PAN : AAATK2827N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIMAL DESAI RESPONDENT BY: SHRI KRISHNA PRABHAKAR O R D E R PER N.R.S. GANESAN, JM THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT(A)-II, RAJKOT DATED 30-09-2009 AND PERTAINS TO ASSESSMENT YEAR 2005-06. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE OF RS.2 LAKHS ON ACCOUNT OF CONTRIBUTION TO GRATUITY FUND. 3. SHRI VIMAL DESAI, THE LD.REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE LOWER AUTHORITIES DISALLOWED THE CLAIM OF THE ASSES SEE ON THE GROUND THAT THE GRATUITY SCHEME WAS NOT APPROVED BY THE COMMISSIONE R OF INCOME-TAX. ACCORDING TO THE LD.REPRESENTATIVE, THE ASSESSEE HA S FILED AN APPLICATION BEFORE THE CIT-I, RAJKOT ON 08-07-2010 FOR APPROVAL OF THE GRATUITY FUND. THE SAID APPLICATION IS STILL PENDING BEFORE THE COMMISSIONE R AND THE ASSESSEE IS FOLLOWING UP THE MATTER. THEREFORE, ACCORDING TO T HE LD.REPRESENTATIVE, THE CLAIM OF THE ASSESSEE WITH REGARD TO THE CONTRIBUTION TO GRATUITY FUND IS SUBJECT TO APPROVAL THAT MAY BE GRANTED BY THE CIT-I, RAJKOT. THEREFORE, THE LD.REPRESENTATIVE SUBMITTED THAT THE APPEAL MAY BE KEPT IN ABEYANCE OR THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE ASSE SSING OFFICER FOR ITA NO.1186/RJT/2009 2 RECONSIDERATION AFTER THE APPLICATION OF THE ASSESS EE FOR APPROVAL OF THE GRATUITY FUND WAS DISPOSED OFF BY THE COMMISSIONER. 4. WE HAVE ALSO HEARD SHRI KRISHNA PRABHAKAR, THE L D.DR THE LD.DR SUBMITTED THAT AS ON TODAY, THE APPROVAL WAS NOT GR ANTED AND THE APPLICATION FILED BY THE ASSESSEE ON 08-07-2010 IS PENDING FOR DISPOS AL BEFORE THE CIT(A)-I, RAJKOT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND HAVE ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AS ON TO DAY, THE GRATUITY FUND WAS NOT APPROVED BY THE COMMISSIONER OF INCOME-TAX-I, RAJKO T. THE ASSESSEE CLAIMS THAT AN APPLICATION FOR APPROVAL WAS FILED BEFORE T HE COMMISSION AND APPROVAL OF THE SAME IS PENDING. WHEN THE MATTER IS PENDING BE FORE THE COMMISSIONER FOR APPROVAL IT IS APPROPRIATE TO KEEP THE MATTER IN AB EYANCE TILL THE APPLICATION WAS DISPOSED OFF BY THE ADMINISTRATIVE COMMISSIONER ONE WAY OR THE OTHER WITH REGARD TO GRANT OF APPROVAL TO GRATUITY FUND. HOWE VER, KEEPING THE APPEAL IN ABEYANCE BY THIS TRIBUNAL MAY NOT SERVE ANY PURPOSE . ONCE THE APPROVAL IS GRANTED, THE ASSESSING OFFICER HAS TO AGAIN EXAMINE THE MATTER WHETHER THE PAYMENT HAS ACTUALLY BEEN MADE WITHIN THE DATES SPE CIFIED IN THE STATUTORY PROVISIONS. IN SUCH CIRCUMSTANCES, IN OUR OPINION, THE MATTER NEEDS TO BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION IN THE LIGHT OF THE DECISION THAT MAY BE TAKEN BY THE CIT(A)-I, RAJKOT ON THE APPLICATION FILED BY THE ASSESSEE FOR APPROVAL OF THE GRATUITY FUND. ACCORDINGLY WE SET ASIDE THE ORDER OF LOWER AUTHORITIES AND REMAND BACK THE MATT ER TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RECONSIDER TH E ISSUE AFRESH AFTER THE APPLICATION OF THE ASSESSEE WAS DISPOSED OFF ONE WA Y OR THE OTHER BY THE CIT-I, RAJKOT WITH REGARD TO APPROVAL OF THE GRATUITY FUND . 6. WE HOPE THAT THE CIT-I, RAJKOT SHALL DISPOSE OFF THE APPLICATION WITHIN A REASONABLE TIME, IF IT IS NOT ALREADY DISPOSED OFF, PREFERABLY WITHIN FOUR WEEKS FROM THE DATE OF RECEIPT OF COPY OF THIS ORDER. SI NCE THE MATTER IS VERY OLD ONE IT IS ITA NO.1186/RJT/2009 3 APPROPRIATE FOR THE CIT(A)-I, RAJKOT TO SEE THAT TH E APPLICATION IS DISPOSED OFF ONE WAY OR THE OTHER AT THE EARLIEST OPPORTUNITY SO THA T THE ASSESSING OFFICER CAN COMPLETE THE ASSESSMENT AFTER CONSIDERING THE ORDER PASSED BY THE CIT-I, RAJKOT ON THE APPLICATION FILED BY THE ASSESSEE FOR APPROV AL OF GRATUITY FUND. 7. WITH THE ABOVE OBSERVATION THE APPEAL OF THE ASS ESSEE IS TREATED AS ALLOWED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING TODAY, THE 23 RD DAY OF JUNE, 2011. SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 23 RD JUNE, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-II, RAJKOT 4. THE CIT-I, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT ITA NO.1186/RJT/2009 4