Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1259 - HC - Income TaxDisallowance being contribution to the approved pension fund - whether there is any ceiling fixed in respect of the contribution which have been made by the respondent/assessee? - whether it was towards an ordinary annual contribution or whether it was towards an initial contribution? - HELD THAT:- As noticed from the rules, the limitations have been prescribed only for the initial contribution and ordinary annual contribution to the funds. Thus, the consequence that would follow is that any other contribution made other than initial contribution or an ordinary annual contribution, would not be covered under the rules and no ceiling has been fixed with regard to the amount of such contribution. This has not been disputed by the revenue that the amount paid by the respondent/assessee in excess of 27% of the salaries of the employees are neither towards ordinary annual contribution nor towards initial contribution and the payment was necessitated due to short-fall discovered in the course of actuarial valuation of the funds which is in exceptional circumstances and has been made to ensure that the superannuation funds will be able to discharge its obligation to the employees. We are satisfied that the amount which was remitted by the respondent/assessee is neither towards an initial contribution nor towards an ordinary annual contribution and, therefore, the ceiling fixed under the rules will not apply to such a contribution. That apart, this contribution had to be made considering the peculiar circumstances and it was a one-time payment, therefore we are of the view that the learned Tribunal rightly allowed the appeal filed by the assessee. That apart the decision in the case of Glaxo Smithkline Pharmaceuticals [2011 (1) TMI 1530 - ITAT MUMBAI] has been affirmed by the High Court of Judicature at Bombay [2013 (3) TMI 759 - BOMBAY HIGH COURT] We find there are no ground to interfere with the order passed by the learned Tribunal. Accordingly, the appeal filed by the revenue dismissed.
|