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Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment ♦ GRATUITY PAYMENTS Where payment towards gratuity fund was made beyond due dates but assessee had paid gratuity before due date for filing of return, assessee was entitled to deduction of gratuity payment [Assessment year 1992-93] [In favour of assessee] CIT v. Sri Sakthi Textiles Ltd. [2009] 313 ITR 167 (Mad.) Where the payment towards gratuity fund was made beyond the due dates but assessee had paid the gratuity before the due date for filing of the return, the assessee was entitled to deduction of gratuity payment, in view of the decision in the case of CIT v. Nexus Computer (P.) Ltd.[2009] 313 ITR 144 (Mad.). CASE REVIEW CIT v. Nexus Computer P. Ltd. [2009] 313 ITR 144 (Mad) followed and relied upon. J. Naresh Kumar for the Appellant. Venkatanarayanan andSubbaraya Aiyar for the Respondent. JUDGMENT K. Raviraja Pandian, J. - The Revenue is on appeal against the order of the Income-tax Appellate Tribunal, Madras "A"Bench, dated November 7, 2003, made in I.T.A. No. 2176/Mds/1996 for the assessment year 1992-93. 2. The assessee filed its return of income for the assessment year 1992-93 on December 30, 1992, declaring taxable income of Rs. 35,62,410. The Assessing Officer, while completing the assessment, found that the assessee had paid contribution to gratuity fund amounting to Rs. 7,83,495 beyond the accounting period. The Assessing Officer held that the extended due date as per the proviso to section 43B of the Act was not applicable to gratuity and superannuation fund. He, therefore, disallowed the claim for deduction under section 43B of the Act. On appeal, the Commissioner of Income-tax (Appeals) upheld the claim and directed the Assessing Officer to allow the deduction. The Revenue on its turn filed an appeal before the Income-tax Appellate Tribunal. The Tribunal held that the assessee has paid the amount before the due date for filing the return and, therefore, the assessee was entitled to get the benefit under the first proviso to section 43B of the Act. The Tribunal allowed the claim by following the decision of the Calcutta…

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