M/s Linkwell Telesystems Private Limited, Hyderabad V. Dy.CIT, Circle-16(1), Hyderabad

ITA 43/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82528 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 10-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B RAMA KRISHNA
• Assessee Lawyers: V SRINIVAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.43/HYD/13 : ASSESSMENT YEAR 2009 - 10 M/S. LINKWELL TELESYSTEMS PRIVATE LIMITED, HYDERABAD (PAN AAACL 3452 E) V/S. DY. COMMISSIONER OF INCOME - TAX CIRCLE 16(1) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.SRINIVAS RESPONDENT BY : SHRI B.RAMAKRISHNA DR DATE OF HEARING 12 . 11 .2014 DATE OF PRONOUNCEMENT 14.11.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A) V, HYDERABAD DATED 30.11.2012, WHEREBY HE CONFIRMED THE ADDITION OF RS.7,35,267 MADE BY THE ASSESSING OFFICER BY WAY OF DISALLOWANCE ON ACCOUNT OF PAYMENT MADE BY THE ASSESSEE TO LIC OF INDIA TOWARDS EMPLOYEES GRATUITY FUND. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, WHICH IS ENGAGED IN THE BUSINESS O F MANUFACTURING AND TRADING OF TELE - COMMUNICATION EQUIPMENT AND PROVIDING RELATED SERVICES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 25.9.2009 DECLARING TOTAL INCOME OF RS .3,94,52,230. DURING TH E COU RS E OF ASSESSMENT PROCEED INGS, IT WAS NO T ICED BY TH E ASSESSING OFFICER THAT THE ASSESSEE HAS CL A IM E D EXPENDITURE OF R S .37,35.267 ON ACCOUNT OF PAYMENT MADE TO LI C IN RE SPE CT OF EMPLOYEES GRATUITY FUND. ALTHOUGH APPLICATION FOR APPROVAL OF TH E SAID GRATUITY FUN D WAS FIL E D BY TH E I TA NO. 43 /H YD/20 1 3 M/S. LINKWELL TELESYSTEMS PRIVATE LIMITED, HYDERABAD 2 ASSESSEE BEFORE THE CON C ERNED COMMISSIONER OF INCOME - TAX ON 15.11.2002, NO SUCH APPROVAL WAS GRAN T ED BY THE COMMISSIONER. THE ASSESSING OFFICER THEREFORE, DISALLOWED THE EXPENDITURE OF R S .7,35,267 CLAIM E D BY TH E ASSESSEE ON ACCOUN T OF PAYMENT MADE TOW ARD S EMPLO Y EES GRATUITY FUND FOR WANT OF APPROVAL FROM THE COMMISSIONER OF INCOME - TAX. 3. ON APPEAL, THE LEARNED CIT(A) CON F IRM E D THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON THIS ISSUE OBSERVING THAT IN THE ABSENCE OF APP R OVAL GIVEN BY THE CONCERNED COMMISSIONER TO THE GRATUITY FUND, THE STATUTORY CON DI TION FOR CLAIMING DEDUCTION UNDER S.36(1)(V) OF THE ACT WAS NOT SATISFIED. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS PR E FERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUM ENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS SUBMI T T E D BY THE LEARNED COUNSEL FOR THE ASSESSEE , THE EMPLOYEES GRATUITY FUND HAS SINCE BEEN AP PR OVED BY THE CON C ERNED COMMISSIONER VIDE O R DER DATED 18.3.2014. A COPY O F THE SA ID ORDER IS ALSO PL A CED ON RECORD BEFORE US BY THE LEARNED COUN S EL FOR THE ASSESSEE, WHICH CLEARLY SHOWS THAT THE LEARNED COMMISSIONER HAS GRANTED APPROVAL TO THE EMPLOYEES GRATUITY FUND OF TH E ASSESSEE WITH RETROSP E CTIVE EFFECT F R OM 1.4.2007. KEEPING IN VIEW THE S AID AP PR O V AL, WE FIND THAT THE REQUIRED CONDITION FOR CLAIMING DEDUCTION UNDER S.36(1)(V) IN R E SPECT OF PAYM E N T M ADE TO LIC TOW A RD S EMPLOY E ES GRATUITY FUND HAS BEEN DULY SATISFIED BY THE ASSESSEE AND THE ASSESSEE AC C OR D INGLY IS ENTITLED TO CL AIM THE DEDUCTION UNDER THE SAID PROVISION . WE THEREFORE, DELETE THE DISALLOWANCE MADE BY TH E ASSESSING OFFICER AND CO NF IRMED BY THE CIT(A) ON THIS ISSUE AND ALLO W THE APPEAL OF THE ASSESSEE. I TA NO. 43 /H YD/20 1 3 M/S. LINKWELL TELESYSTEMS PRIVATE LIMITED, HYDERABAD 3 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDE R PRONOUNCED IN THE COURT ON 14 TH NOVEMBER, 2014 SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 14 TH NOVEMBER 2014 COPY FORWARDED TO: 1. M/S. LINKWELL TELESYSTEMS PRIVATE LIMITED, 1 - 11 - 252/1/A, GOWRA KLASSIC, BEGUMPET, HYDERABAD 5T00 016 2 . DY. COMMISSIONER OF INCOME - TAX CIRCLE 16 ( 1 ), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) V , HYDERABAD COMMISSIONER OF INCOME - TAX - I V , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S