TMI Blog2010 (3) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... of one of its members who was involved in contempt proceedings for disobedience of the order of the Supreme Court. The Tribunal allowed the deduction. Held that- the amount had not been spent for the benefit of the association or in connection with the membership of the person. The assessee was not expected to spend amounts to defend a person who had violated the order of the Court. The amount wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. The assessee had not filed a return of income, therefore notice under section 148 of the Act was issued. Thereafter, the return of income was filed by the respondent. The Assessing Officer passed an order of assessment on December 22, 1999. Being aggrieved by the order of assessment, the respondent filed an appeal before the Commissioner of Income-tax (Appeals) contending that the exclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt judgments reported in CIT v. BEL Employees Death Relief Fund and Service Benefit Fund Association [1997] 225 ITR 270 (Karn) and CIT v. I. T. I. Employees Death and Superannuation Relief Fund [1998] 234 ITR 308 (Karn). 2. Whether the Tribunal was correct in holding that since the assessee had inadvertently offered voluntary contributions to tax it can be linked to defraying legal expenses inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration is that if an IAS officer on disobedience of the orders of the court was involved in a con-tempt proceedings, whether the association can pay legal expenses under the head legal expenses to defend the case of such member. On a perusal of the bye-laws of the association and back ground of Sri Vasudevan, we are of the opinion that the Assessing Officer was justified in denying the claim mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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