TMI Blog2011 (3) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... und or trust or any other entity. The pension scheme provides that pension would be paid by the appellant to its employees on their attaining the retirement age or resigning after having rendered services for specified years. Thus, where the liability on this account accrues from year to year, the same is payable on retirement/resignation of the eligible employees. In view thereof, the ratio of the judgment of Metal Box Company of India Ltd. v. Their Workmen [1968 (8) TMI 53 - SUPREME Court] and Bharat Earth Movers v. CIT [2000 (8) TMI 4 - SUPREME Court] would clearly get attracted. For disqualifying a provision for leave encashment, a specific clause had to be inserted by the Legislature as the Legislature was conscious of the fact that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 and 2001-02. In this appeal we are concerned with the assessment year 2001-02. From the order of the Commissioner of Income-tax (Appeals) as well as the Income-tax Appellate Tribunal, we find that this question of law pertains to the assessment year 1999-2000 and not this year. 3. In so far as question No. (b) is concerned, Mr. Syali, learned senior counsel appearing for the respondent/assessee fairly concedes that this issue has to be decided in favour of the Revenue in view of the judgment of the Supreme Court in the case of Liberty India v. CIT [2009] 317 ITR 218 (SC). 4. Questions Nos. (c) and (d) relate to the provision for pension made by the assessee. The assessee is following the mercantile system of accounting. It is ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act are applicable in the instant case. As stated above, the assessee had created the provision for pension by introducing a pension scheme over and above the benefits available under the superannuation scheme. Whether such a provision would be covered by any of the funds stipulated in clause (b), would be the causal. Admittedly, the creation of the aforesaid provision for pension can neither be treated as contribution to any provident fund or superannuation fund or gratuity fund. 6. Ms. Rashmi Chopra, learned counsel for the Revenue, however, argued that it would fall within the expression "any other fund for the welfare of employees" which is specifically stipulated in clause (b). We are unable to accept this submission of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to clause (f) of section 43B of the Act which was inserted, with effect from April 1, 2002. Thus, by adding this clause, the Legislature made it clear that any such provision for leave encashment would ipso facto not be eligible for deduction unless the actual payment is made. For disqualifying a provision for leave encashment, a specific clause had to be inserted by the Legislature as the Legislature was conscious of the fact that this clause would not be covered by the existing clause (b) of section 43B of the Act. 8. We are in agreement with the view of the Commissioner of Income-tax (Appeals) that the pension scheme of the assessee does not envisage any regular contribution to any fund or trust or any other entity. The pension sc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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