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2015 (8) TMI 369 - HC - Income TaxDisallowance of contribution to medical benefit scheme for the benefit of its retired employees - whether in the light of Section 40A(9) the Tribunal could not have allowed deduction under Section 37 of the Act? - Held that:- Section 40A which starts with the non obstante clause. Prior to its amendment by Finance Act 2011, as per sub section (9) introduced by Finance Act, 1984 with effect from 1.4.1980, deduction of only payments for the purposes and the extent provided was permitted. Assessee does not have a case that the contribution made by it to the pension fund is payment which is permitted under Section 36. If that be so, in view of Section 40A(9), the payment made by the assessee could not have been allowed to be deducted and its disallowance by the Assessing Officer, is perfectly in line with the statutory provisions. We may also add that since sub section 9 was added to Section 40A by Finance Act, 1984, the judgment of the Madras High Court in T.Stanes& Company Limited (1974 (8) TMI 14 - MADRAS High Court ) rendered in the context of assessment years 1959-1960 to 1964-1965 has no relevance in so far as the case of the assessee is concerned. - Decided in favour of revenue.
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