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2015 (6) TMI 1147 - AT - Income TaxDisallowance of Contribution towards Gratuity & Superannuation Fund and provision for bad debts - Held that - We find that it is held by Hon ble Allahabad High Court force in assessee s own case for A. Y. 2009-10 that it is an undisputed fact that the assessee s enjoying the benefit of section 80P (2) and the deduction is not dependent on the quantification of claim made by the assessee and therefore if there is any addition made in the income, the deduction allowable u/s 80P (3) also increases by the same amount and as a consequence, the addition becomes tax neutral. Appeal of the assessee is allowed.
Issues:
Appeal against addition to income for Gratuity & Superannuation Fund and provision for bad debts for A.Y. 2010-2011. Analysis: The appellant raised 9 grounds of appeal, focusing on the addition to income by the Assessing Officer (A.O.) of a substantial amount for Gratuity & Superannuation Fund and disallowance of provision for bad debts. The appellant contended that the issue was settled in their favor by a previous judgment of the Hon'ble Allahabad High Court for A.Y. 2009-10 in their own case, providing a copy of the judgment as evidence. The Revenue's representative supported the assessment order. Upon reviewing the submissions, the Tribunal noted the High Court's decision in the appellant's case for A.Y. 2009-10, emphasizing that the appellant was entitled to a deduction under section 80P(2) regardless of the specific claim amount. Any addition to income would correspondingly increase the deduction under section 80P(2), resulting in a tax-neutral outcome. The Revenue's representative failed to highlight any factual distinctions, leading the Tribunal to follow the High Court's judgment and consequently delete the additions made by the A.O. and upheld by the CIT (A). In conclusion, the Tribunal allowed the appellant's appeal, citing the precedent set by the Hon'ble Allahabad High Court for A.Y. 2009-10 in the appellant's own case. The decision was pronounced in open court on the specified date.
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