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2015 (10) TMI 300 - AT - Income TaxAddition on account of actual payment of pension to the employees out of contribution by the assessee to the pension fund - Held that:- On perusal of the Balance Sheet for pension fund reflects that the pension contribution for the assessment year 2002-03 and the payments made to the pensioners as per Annexures-V,VI and VII totaled to ₹ 22,89,137/-. In assessment year 2003-04, the total contribution to the pension fund was ₹ 32,07,989/- and the payments made to the pensioners as per AnnexureV and VI totaled to ₹ 56,33,188/-. We find merit in the claim of the assessee that the expenditure incurred on payments being made to the pensioners is allowable in the hands of the assessee as revenue expenditure. In assessment year 2002-03 the total contribution to the pension fund during the year was ₹ 1.22 crores out of which ₹ 22,89,137/- were actually disbursed to the pensioners and hence the said expenditure of ₹ 22,89,137/- is allowable as an expenditure in the hands of the assessee for assessment year 2002-03. In assessment year 2003-04 the total contribution to the pension fund was ₹ 32,07,989/-. However, the payments made to the pensioners totaled to ₹ 56,33,188/-. We restrict the allowance of the expenditure in the hands of the assessee to the extent of pension contribution i.e. ₹ 32,07,989/- in assessment year 2003-04. In the totality of the above said facts and circumstances, we find merit in the claim of the assessee and the expenditure of ₹ 22,89,137/- is allowed in assessment year 2002-03 and expenditure of ₹ 32,07,989/- s allowed in assessment year 2003-04.
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