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2019 (2) TMI 814 - AT - Income TaxDeduction u/s. 35DDA - payment made towards Voluntary Retirement Scheme - whether payment made to the employee under Employees Voluntary Retirement Scheme and cannot be held as a contribution to the Superannuation Fund of the employees? - Held that:- We find that the assessee had submitted before the AO and CIT(A) that it had paid the sum to its employees on their opting to avail the Voluntary Retirement Scheme and that it was not a contribution to the approved Superannuation Fund as observed by the AO. The assessee had claimed the sum as a deduction u/s. 35DDA and was allowed during the assessment u/s. 143(3) of the Act. Thus, it is clear that the payment is not towards the Superannuation Fund as held by the AO. In fact Section 2(6) of the Income Tax Act defines the – “approved superannuation fund" as a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in accordance with the rules contained in Part B of the Fourth Schedule. Fringe Benefits are defined u/s. 115WB of the Act Clause-C of Section-1 thereof refers to - any contribution by the employer to an approved superannuation fund for employees. In the case before us, the payment made towards Voluntary Retirement Scheme is not a contribution to the approved Superannuation Fund for employees as rightly held by the CIT(A). - decided against revenue
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