- (1.) These two appeals have been filed under Section 260A of Income Tax Act, 1961 ( hereinafter referred to as 'Act, 1961)' arising from judgment and order dated 24.7.2014 passed by Income Tax Appellate Tribunal, Lucknow Bench 'A' Lucknow (hereinafter referred to as the Tribunal ) in Income Tax Appeal No.384/LKW/2011 and Income Tax Appeal No. 540/LKW/2011 with respect of Assessment Year 2006-07 and Assessment Year 2005-06 respectively.
(2.) Substantial questions of law arising in both the appeals in our view are as under:- (i) Whether the Tribunal is justified in disallowing deduction of actual payment made to Life Insurance Corporation of India under Group Gratuity Insurance Scheme, on the ground that such scheme was not specifically approved by concerned Commissioner of Income Tax though carried under general approval of Central Government. (ii) Whether the payment made to LIC by way of premium on Insurance Policy under Group Gratuity Insurance Scheme was liable to be treated as payment made to a fund which is deemed to have been approved by the CIT by the reason of efflux of time. (iii) Whether at an any rate actual payment made to the retiring employees, through the mechanism of Insurance Policy issued under Group Gratuity Insurance Scheme launched by Life Insurance Corporation of India should have been considered and allowed as deduction under Section 37 read with Section 43B of the Act ? (iv) Whether addition of amount being 5% of premium collected by Assessee and forfeiture of earnest money/ premium is vitiated due to non-consideration of principle governing accrual of income and other material / information placed on record. (v) Whether the Tribunal was legally justified in upholding tax-ability of 5% premium collected by Assessee in its hand without considering obligation / liabilities of overriding nature, attached to the receipts in question. (vi) Whether the Tribunal was justified after holding premium as taxable and then not directing Assessing Officer to allow deduction under Section 80IA of Act, 1961 being the same as part of eligible profits. (vii) Whether ITAT was legally correct in holding that interest on premium payable by the allottees of industrial sites as financed by the appellant as an accredited financial corporation did not form part of the income qualifying for exemption under Section 80IA of the Act?
(3.) Assessing Officer made addition / disallowance in respect of Assessment Years 2005-06 and 2006-07 as under:- Assessment Year 2005-06:- JUDGEMENT_353_LAWS(ALL)7_2016_1.html Assessment Year -2006-07:- JUDGEMENT_353_LAWS(ALL)7_2016_2.html;