ITO, Jaipur V. M/S JAIPUR THAR GRAMIN BANK, Jaipur

ITA 196/JPR/2012

• Counselvise Citation: 19623114 RSA 2012
• Duration Of Justice: 2 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 01-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS NEENA JEPH
• Assessee Lawyers: S L PODDAR
• Keywords: Competent authority

Judgement Text

IN THE INCOMETAX APPELLATE TRIBUNAL JAIPUR BENCH: JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. MEENA) I.T.A. NO. 196/JP/2012 ASSTT. YEAR- 2008-09 PAN NO. AAAJJ 0519 R THE I.T.O., M/S JAIPUR THAR GRAMIN BANK, WARD 2(2), JAIPUR. VRS. 56, SARDAR PATEL MARG, C-SCHEME, JAIPUR. (APPELLANT) (RESPONDENT) DEPARTMENT BY :- MRS. NEENA JEPH ASSESSEE BY :- SHRI S.L. PODDAR DATE OF HEARING : 29/09/2014 DATE OF PRONOUNCEMENT : 17/10/2014 O R D E R PER: T.R. MEENA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 07/12/2011 OF THE LEARNED C.I.T.(A)-I, JAIPUR FOR TH E A.Y. 2008-09. THE SOLE GROUND OF APPEAL IS AGAINST ALLOWING EXPENSES O F RS. 1,23,93,264/- U/S 36(I)(V) EVEN WHEN THE CONTRIBUTION WAS MADE TO AN UNAPPROVED GRATUITY FUND. 2. THE LEARNED ASSESSING OFFICER OBSERVED THAT THE A SSESSEE HAD CLAIMED RS. 1,23,93,264/- AS PAYMENT TOWARDS GRATUIT Y FUND. THE ASSESSING OFFICER GAVE REASONABLE OPPORTUNITY OF BE ING HEARD ON THIS ITA 196/JP/2012 ITO VS. M/S JAIPUR THAR GRAMIN BANK 2 ISSUE, WHICH WAS REPLIED BY THE ASSESSEE AND ARGUED T HAT THE APPELLANT HAD FILED THE PAPERS FOR REGISTRATION OF GRATUITY F UND WITH COMPETENT AUTHORITY. THE COPY OF APPLICATION WAS ALSO FILED BEF ORE HIM, THEREFORE, IT WAS CLAIMED THAT PAYMENT MADE TO LIC THROUGH JTG BANK GRATUITY TRUST IS ALLOWABLE U/S 36(I)(V) OF THE IT ACT. AFTER CONSI DERING THE ASSESSEES REPLY AND VARIOUS CASE LAWS DISCUSSED BY THE ASSESSE E, HE MADE THE ADDITION. 3. BEING AGGRIEVED BY THE ORDER OF THE LEARNED ASSE SSING OFFICER, THE ASSESSEE CARRIED THE MATTER TO THE LEARNED CIT(A), W HO HAD ALLOWED THE APPEAL BY OBSERVING THAT THE ASSESSEE HAS FILED THE APPLICATION FOR APPROVAL THEN SUCH APPROVAL WILL RELATE TO THE DATE ON WHICH APPLICATION FOR APPROVAL HAS BEEN FILED. HE RELIED ON THE DECIS ION IN THE CASE OF RAJASTHAN RAJYA SAHAKARI SANGH LTD. IN ITA NO. 702/ JP/2009 DATED 16/7/2010 ON THE GROUND THAT THE ASSESSEE HAS FILED THE APPLICATION FOR APPROVAL. THE ASSESSEE IS ENTITLED TO DEDUCTION IN R ESPECT OF ACTUAL GRATUITY PAYMENT. THE HONBLE ITAT IN ASSESSEES OWN C ASE IN A.Y. 2007- 08 ON SAME FACTS HAS ALLOWED THE GRATUITY PAYMENT U/ S 36(I)(V) READ WITH SECTION 40A(9)OF THE IT ACT. 4. NOW THE REVENUE IS IN APPEAL BEFORE US. 5. LEARNED DR VEHEMENTLY RELIED UPON THE ORDER OF T HE LEARNED ASSESSING OFFICER AND ARGUED THAT NO APPROVAL HAS B EEN TAKEN BY THE ITA 196/JP/2012 ITO VS. M/S JAIPUR THAR GRAMIN BANK 3 ASSESSEE FOR GRATUITY FUND. THUS, THE ASSESSING OFF ICER WAS RIGHT TO DISALLOW THE EXPENSES. DR ALSO RELIED ON THE DECISIO N IN THE CASE OF BROOKBOND 2011 TOIL 712 (CALCUTTA) IN HER SUPPORT. 6. AT THE OUTSET, THE LEARNED AR FOR THE ASSESSEE A RGUED THAT IN A.Y. 2007-08, THIS IDENTICAL ISSUE HAS BEEN DECIDED IN F AVOUR OF THE ASSESSEE IN ITA NO. 940/JP/2011 ORDER DATED 31/10/2011, THER EFORE, THE ORDER OF THE LEARNED CIT(A) IS TO BE UPHELD. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN PRECEDING YEAR, IDENTI CAL ISSUE HAD BEEN DECIDED BY THE COORDINATE BENCH IN FAVOUR OF THE AS SESSEE. THE APPELLANT HAD APPLIED FOR GRATUITY FUND BEFORE THE COMPETENT AUTHORITY BUT HAS NOT BEEN RECEIVED APPROVAL SO FAR, WHICH WILL BE EFFECTIV E FROM THE DATE OF APPLICATION, THEREFORE, WE UPHOLD THE ORDER OF THE L EARNED CIT(A). 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 17/10/2014. SD/- SD/- (R.P. TOLANI) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR, DATED : 17 TH OCTOBER, 2014 * RANJAN ITA 196/JP/2012 ITO VS. M/S JAIPUR THAR GRAMIN BANK 4 COPY FORWARDED TO :- 1. THE ITO, WARD 2(2), JAIPUR. 2. M/S JAIPUR THAR GRAMIN BANK, JAIPUR. 3. THE CIT (A) 4. THE CIT 5. THE D/R GUARD FILE (I.T.A. NO. 196/JP/2012) BY ORDER, AR ITAT JAIPUR.