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2014 (7) TMI 804 - AT - Income TaxValue of FBT u/s 115WB(1)(c) – Single contribution towards pension fund made for all its employees - lump sum amount - details of contribution pertaining to each employee are not available in the Actuarial Valuation Report – Held that:- The contribution paid by the assessee bank is mainly made up of two components, firstly to meet the cost of the accruing benefits during the year and secondly, an adjustment for any deficit or surplus in the scheme at the time for the past year(s) - it is not possible to derive the contribution on a per employees basis which may be used for income tax purposes – Relying upon CIT vs. L.W. Russel [1964 (4) TMI 4 - SUPREME Court] - the amount paid during the year cannot be considered as a contribution to superannuation fund as contemplated under the provisions of section 115WB(1)(c) - the amount is not paid to the benefit of any individual employee, the lump sum contribution made under the defined benefit scheme does not attract provisions of 115WB(1)(c) - as per the definition of ‘contribution’, no individual employee had any benefit earmarked the payment cannot be considered as covered by the provisions of 115WB(1)(c) – thus, the contribution made to the fund under this benefit scheme cannot be considered as the amount to be considered under the provisions of section 115WB(1)(c) for the purpose of FBT – Decided in favour of Assessee.
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