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TMI Blog2002 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... ment under law - "The expression 'due date' means the time stipulated for payment. As per the Explanation to clause (va) for the purpose of the clause, 'due date' means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund. The amount is deductible only if the assessee credits the amount to the employee's accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the due date for making such payment under law. The assessee did not file any appeal against the disallowance of this amount. However, in the appeal before the Tribunal, the assessee has taken this issue as an additional ground which reads as follows: "In respect of the assessment year 1991-92, the appellant had claimed gratuity paid on July 3, 1991, amounting to Rs. 4,29,000 as allowable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated October 29, 1998, on actual payment basis. Shri P. K. R. Menon, learned standing counsel for the Revenue, appearing for the appellant, submits that the question raised in this case is covered by the decision of this court in CIT v. South India Corporation Ltd. [2000] 242 ITR114. Shri P. Balachandran, learned counsel appearing for the respondent, on the other hand, submits that the said de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer to credit an employee's contribution to the employee's account in the relevant fund. The amount is deductible only if the assessee credits the amount to the employee's account in the relevant fund on or before the date by which he is legally or contractually required to do so. The right to deduction would be lost even if the sum is credited after the due date. It cannot be an indefinite date l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erent situations. The view of the Tribunal that payment having been made before the close of the financial year, qualifies for deduction is indefensible." According to us, this decision squarely applies to the case on hand without any distinction. The decision of the Tribunal cannot be sustained. The questions of law on which notice is ordered are answered in the negative, i.e., against the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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