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| The Tax Publishers2020 TaxPub(DT) 3244 (Ctk-Trib) INCOME TAX ACT, 1961
Section 40A(7) Section 263
Payment made to LIC of India was not a provision but it was actual expenditure claimed under gratuity contribution, to be allowed as deduction, and therefore, Pr. CIT was not justified in directing AO to disallow payment made to gratuity fund under section 40A(7).
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Revision under section 263 - Erroneous and prejudicial order - -
AO noticed that assessee contributed towards gratuity fund which was paid to LIC of India in group gratuity scheme. Pr. CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO not having made disallowance under section 40A(7) on account of payment made to unapproved gratuity fund. Held: Payment made to LIC of India was not a provision but it was actual expenditure claimed under gratuity contribution, to be allowed as deduction, and therefore, Pr. CIT was not justified in directing AO to disallow payment made to gratuity fund under section 40A(7).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, CUTTACK BENCH
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