Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 1234 - AT - Income TaxDisallowance of deduction towards payment of PF and gratuity - Gujarat Cooperative Societies Act, 1961 (“GCSA”) authorizes assessee to establish a provident fund for its employees which will be governed by Employees' Provident Fund Act, 1952 - Held that:- A fund which has been constituted under the GCSA will be treated at par with a fund constituted under scheme formulated as per the Employees' Provident Fund Act, 1952. Thus, a fund which has been constituted under section 72 of the GCSA and administered under section 71 of this Act would be treated as a fund contemplated in be definition of Section 2(38) of the Income Tax Act. Thus, it is observed that fund constituted by the assessee under GCSA is to be treated at par with, fund recognized by the Chief Commissioner or established under the scheme formulated under the Provident Fund Act, as provided u/s.2(38) of the Act - section 36(l)(iv) and section 40A(9) would come in picture. They provide deduction of any expenditure incurred by assessee by way of contribution towards recognized fund. The assessee fulfills all these conditions. It has been allowed this deduction in the Asstt. Years 2004-05, 2006-07, 2008-09, 2009-10 and 2011-12. The assessment orders were passed under section 143(3) of the Income Tax Act. We allow the appeal of the assessee and direct the AO to grant deduction of amounts paid by the assessee towards provident fund established by it under section 72 of the GCSA. - Decided in favour of assessee
|