Appeal details
Counselvise Citation
[2009] 115 COUNSELVISE.COM (IT) 0242 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 9 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
23-10-2009
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
21-10-2009
Assessment Year
2003-2004
Appeal Filed On
12-01-2007
Judgement Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HONBLE SH RI D.C. AGARWAL, A.M.) I.T.A. NO. 232/AHD./2007 ASSESSMENT YEAR : 2003-2004 MOFLEX SUSPENSIONS PVT. LTD., BARODA -VS.- INCOME TAX OFFICER, WARD-4(1), BARODA (P.A. NO. AABCM 8271 B) (APPELLANT) (RESPONDENT) APPELLANT BY : N O NE (WRITTEN SUB MISSION FILED) RESPONDENT BY : SHRI GOVIND SINGHAL O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER :- THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE OR DER DATED 19-10-2006 OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -III, BARODA FOR THE ASSESSMENT YEAR 2003-04 HOLDING THAT PAYMENT MADE B Y THE ASSESSEE-COMPANY TO LICI TOWARDS GROUP CONTRIBUTION TOWARDS GROUP GRATUITY SCHEME IS NOT ALLOWABLE UNDER SECTION 40A(7) OF THE INCOME TAX ACT. 2. NO ONE APPEARED ON BEHALF OF THE ASSESSEE WHEN T HE CASE WAS CALLED FOR HEARING. THOUGH WRITTEN SUBMISSIONS WERE FILED BY THE ASSESSEE, WHE REIN IT WAS CONTENDED THAT WHEN THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) PASSED THE IMPU GNED ORDER, APPLICATION FOR APPROVAL OF GRATUITY FUND WAS PENDING BEFORE THE LD. CIT-II, BA RODA. THE SAID APPLICATION WAS FILED IN NOVEMBER, 2002. THE APPROVAL OF THE FUND WAS NOT GR ANTED BY THE LD. CIT BEFORE THE ASSESSMENT WAS COMPLETED. HOWEVER, THE APPROVAL HAS NOW BEEN R ECEIVED VIDE ORDER DATED 24.10.2007, COPY OF WHICH IS ENCLOSED BEFORE US, WHEREIN THE APPROVA L IS ACCORDED WITH EFFECT FROM 01.03.2002. IN THE WRITTEN SUBMISSION, A PRAYER IS MADE THAT CONSI DERING THE FACT THAT APPROVAL HAS NOW BEEN GRANTED, IT MAY BE HELD THAT DEDUCTION CLAIMED AT R S.1,03,543/- IS ALLOWABLE. 3. SHRI GOVIND SINGHAL, LD. DEPARTMENTAL REPRESENTA TIVE CONTENDED THAT THE ASSESSEE IS REQUIRED TO FILE THE ORDER OF GRANTED APPROVAL OF T HE FUND BEFORE THE A.O. WITH EFFECT FROM 01.03.2002. THE A.O. MAY VERIFY THE SAME AND AFTER VERIFICATION, HE MAY CONSIDER THE ALLOWANCE OF DEDUCTION IN ACCORDANCE WITH LAW. 4. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO CONSIDERED THE ORDERS OF AUTHO RITIES BELOW. THE LD. CIT-II, BARODA VIDE 2 ORDER NO. BRD/CIT-II/TECH./G.FUND/MSPL/2007-08 DATE D 24.10.2007 GRANTED THE APPROVAL TO THE MOFLEX SUSPENSIONS PVT. LTD. EMPLOYEES GROUP GR ATUITY SCHEME WITH EFFECT FROM 01.03.2002. IN VIEW OF THIS, THE IMPUGNED ORDER OF LD. LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-III, BARODA IS SET ASIDE AND THE MATTE R IS RESTORED TO THE FILE OF A.O. WITH THE DIRECTION THAT ASSESSEE SHOULD FURNISH THE COPY OF SAID APPROVAL BEFORE THE A.O. THE A.O. MAY VERIFY THE SAME AND AFTER VERIFICATION, RE-ADJUDICA TE THE DISALLOWANCE OF RS.1,03,543/- AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE COURT ON 23.10.2009 SD/- SD/- (D.C. AGARWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 / 10 / 2009 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT 3) CIT(A) CONCERNED, (4) CIT CONCERNED, (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMED ABAD LAHA/SR.P.S.
