TECHNOVA IMAGING SYS (P) LTD EMPLOYEES GROUP GRATUTIY CUMLA SCHEME,MUMBAI V. ITO WARD-22(3)(6), MUMBAI

ITA 2460/MUM/2025

AI Insights

The case revolves around the denial of exemption to Technova Imaging Sys (P) Ltd. Employees Group Gratuity Cumla Scheme under section 10(25)(iv) of the Income Tax Act, 1961, for the Assessment Year 2018-19. The Central Processing Centre (CPC) had denied the exemption based on a misconception regarding the name under which the gratuity fund was approved. The First Appellate Authority upheld this decision, noting a discrepancy in the name on the approval certificate and the name of the appellant. However, the Tribunal clarified that the approval was indeed granted to the entity currently known as Technova Imaging Systems Pvt. Ltd., based on the correct legal documents and name changes registered with the Registrar of Companies.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669177 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI
• Assessee Lawyers: PANKAJ TOPRANI

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.2460/Mum/2025 (Assessment Year :2018-19) Technova Imaging Sys (P) Ltd. Employees Group Gratuity Cumla Scheme TIS(P) Ltd. Laxmi Mills Estate Off Dr. E Moses Road Mahalaxmi, Mumbai- 400 011 Vs. Income Tax Officer, Ward-22(3)(6) Piramal Chamber Lalbaug, Parel Mumbai – 400 012 PAN/GIR No.AAATT4478K (Appellant) .. (Respondent) Assessee by Shri Pankaj Toprani, Adv. (Virtually appeared) Revenue by Shri Hemanshu Joshi, SR DR Date of Hearing 12/06/2025 Date of Pronouncement 26/06/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 17/02/2025 passed by Addl./JCIT(A)-2, Guwahati in relation to the adjustment made u/s.143(1) for the A.Y.2018-19. ITA No.2460/Mum/2025 Techno Imaging Sys (P) Ltd Employees Group Gratuity Cumla Scheme 2 2. In various grounds of appeal the assessee has challenged denying of exemption amount of Rs. 1,72,74,520/- u/s.10(25)(iv) under misconception that the approval of the gratuity fund is not of representative assessee but erstwhile name of the company. 3. The brief facts are that assessee M/s. TechNova Imaging Systems (P) Ltd. Employees Group Gratuity Cum Life Assurance Scheme is a Gratuity Fund set up by TechNova Imaging Systems (P) Ltd. (the Employer) for its employees under an irrecoverable trust for providing gratuity to its employees vide Deed of Trust dated 1st October, 1988. It was granted approval by the ld. CIT(A)-Mumbai vide letter dated 17/04/1995 and the approval was given w.e.f. 01/04/1998. The employer has insured its gratuity liability with LIC of India and also with Birla Sunlife Insurance, accordingly, the entire income of the assessee was exempt u/s. 10(25)(iv) of the Act as per the approved gratuity fund. For the relevant A.Y.2018-19 assessee has e-filed its return of income declaring ‘nil’ income after claiming the exemption u/s.10(25) (iv) on its entire income of Rs.1,72,74,521/-, however, the CPC denied the exemption and assessed the total income of the assessee of Rs.1,72,74,520/- and has raised demand of Rs.74,97,039/-. 4. The ld. First Appellate Authority had rejected assessee’s claim after holding as under:- “5.7. On perusal of details, it is noticed that the appellant has submitted one approval of gratuity fund dtd, 23-4-1990. It is also noticed therein that the said certificate is issued in the name of \"Technova Plate Making Systems Ltd. Employees Group Gratuity ITA No.2460/Mum/2025 Techno Imaging Sys (P) Ltd Employees Group Gratuity Cumla Scheme 3 Scheme,\" but the instant appeal has been filed by the appeal viz. TECHNOVA IMAGING SYS (P) LTD EMPLOEES GROUP GRATUITY CUM L.A. SCHEME\" i.e there is difference in the name of the appellant who has filed appeal and the person whose certificate dated 23.04.1990 has been furnished. The aforesaid fact is evident the screenshot of the said certificate dated 23.04.1990 is reproduced hereunder. ITA No.2460/Mum/2025 Techno Imaging Sys (P) Ltd Employees Group Gratuity Cumla Scheme 4 5. Thus, he held that assessee failed to substantiate the gratuity fund duly approved by the appropriate authority and accordingly, he has confirmed the payment alongwith interest levied by the CPC. 6. After hearing both the parties and on perusal of the facts and material on record, it is seen that there was a change in the company’s name from Techno Imaging Sys (P) Ltd. to Technova Imaging Systems for which copy of fresh certificate of incorporating was issued by the Registrar of Companies, Maharashtra dated 14/09/1993. Later on assessee vide letter dated 18/08/1994 issued by the CIT office to the assessee calling for further information for approval of gratuity scheme. Assessee had submitted the letter in a changed name of the company. Accordingly, order dated 17/04/1995 was passed by ld. CIT to assessee approving the gratuity scheme under part C of the Fourth Schedule of the Income Tax Ac, 1961. The perusal of the order dated 17/04/1995 clearly shows that approval is made in the name of Techno Imaging Systems Pvt. Ltd. Employees Group Gratuity Cumla Scheme and what the First Appellate Authority is referring is some communication dated 23/04/1990 addressed to the trustees, Technova Plate Making Systems Ltd Employees Group Gratuity Scheme. Nowhere the First Appellate Authority has even referred to the approval order dated 17/04/1995. Thus, the assessee has been accorded approval by the appropriate authority which is in the name of the present assessee i.e. Technova Imaging Sys (P) Ltd. Employees ITA No.2460/Mum/2025 Techno Imaging Sys (P) Ltd Employees Group Gratuity Cumla Scheme 5 Group Gratuity Cumla Scheme, then there is no reason for denying any exemption u/s.10(25)(iv). Accordingly, we direct the ld. AO to allow exemption of entire income of Rs.1,72,74,521/- u/s.10(25)(iv), accordingly, appeal of the assessee is allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced on 26th June, 2025. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 26/06/2025 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "