Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 947 - HC - Income TaxContribution made to staff benevolent fund - Whether the Tribunal is right in deleting the disallowance made u/s 40A(9) being contribution to the staff benevolent fund even though such fund was not recognised nor approved in terms of Section 2(5) and (6) of the Income Tax Act – Held that:- A payment of ₹ 14 lakhs was made to the Staff Benevolent Fund - The assessee in order to meet with the requirements of the employees formed a fund for the benefit of the staff - the assessee maintained complete accounts of the fund and also got it audited regularly – the Tribunal was rightly of the view that the object of the statute vide the circular was to discourage creation of bogus trust for the purpose of availing deduction only - the assessee contributed the amount to the staff benevolent fund which was created for the benefit of the staff and family members – relying upon the Circular No. 307 issued by CBDT on 06.07.1904 and Cheran Engineering Corporation Ltd. vs. Commissioner of Income tax [1998 (2) TMI 74 - MADRAS High Court] – Section 40A(9) is not applicable – thus, the order of the Tribunal is upheld – Decided against revenue
|