Commissioner Of Income-Tax vs Coimbatore Premier Corporation (P.) ... on 21 April, 1998
18. We have perused the orders and heard the rival submissions.
There is no dispute that premium towards Gratuity Fund was paid by
the assessee to LIC and the Gratuity Fund created by LIC by virtue of
such payments, was not having the approval of CIT/CCIT under
Section 36(1)(v) of the Act. Nevertheless, it is also a fact that
assessee had filed an application before CIT for such approval on
12.4.2002. No doubt, in the case of Coimbatore Premier Corporation
(P) Ltd. (supra), Hon'ble jurisdictional High Court had held that in the
absence of approval of the fund by Chief CIT or CIT, or in other
words, unless there was strict compliance to Section 40A(7), an
assessee could not claim for relief any amount or payment of
premium to M/s LIC for any Group Gratuity Scheme.