Jind Central Co-Op Bank Ltd vs Income Tax Officer, Ward-1, Bhiwani

PER MADHUMITA ROY, JUDICIAL MEMBER:

The instant appeal filed by the assessee is directed against the order dated 24.10.2025 passed by the Ld. Commissioner of Income-tax (Appeals), NFAC, consideration, which is higher than the provision made of Rs.1,33,00,000/- and, thus, allowable under Section 40A(7) of the Act. Addition, therefore, is liable to be quashed as the crux of the submission made by the Ld. AR.

It is the case of the Revenue that the details filed by the assessee is not fully and truly convincing. Furthermore, the assessee spent an amount in the year under consideration on gratuity and leave encashment from old provision of Rs.7,94,66,492/- which is brought forward from previous year. The gratuity payment of Rs.2,21,79,240/- during the FY 2014-15 is in continuation of previous year provision and the assessee has not utilized the new provision of Rs.1,33,00,000/- in the FY 2014-15 relevant to AY 2015-16. In that view of the matter, the new provision of Rs.1,33,00,000/- is disallowed and added to the total income as per show-cause notice issued to the assessee.

Before the First Appellate Authority, no improvement of record was made by the assessee for filing the details of gratuity paid to the retired employees. Merely the list of amounts and names of payee though could satisfy the same, the assessee has not explained rather only made an evasive denial making bald statement of gratuity paid to the retired employees. As the onus was not discharged properly, the same was rightly found added in the hands of the assessee by the AO as the observation made by the Ld.CIT(A) also appears to be