Section 40A(7) Overrides Section 43B if Conditions Met: Madras HC

Sanmar Speciality Chemicals Limited Vs ACIT Company Circle (Madras High Court) Madras High Court held that the provisions of Section 40A(7) of the Income Tax Act would override Section 43B of the Income Tax Act provided conditions under clauses (a) and (b) of section 40A(7) are satisfied. Facts- The appellant / assessee is engaged in the business of manufacturing and sale of specialty Chemicals and Biotechnology products. One of the issues picked up for assessment relates to a provision made towards gratuity fund with the Life Insurance Corporation of India (LIC). The assessing officer notes ...