TMI Blog2015 (10) TMI 2308X X X X Extracts X X X X X X X X Extracts X X X X ..... Fund Scheme and that the said fund has been recognized by the CIT-VII, Chennai. A bare reading of the above provision clearly and unambiguously states that recognised provident fund means a provident fund which has been and continues to be recognised by the Chief Commissioner or Commissioner and nowhere it states that it should be recognised by the jurisdictional Commissioner. Therefore, it is not open to the Department to take a plea that the provident fund trust should be recognised by the Commissioner/Chief Commissioner of Income Tax, Salem, which is not the purport of the provision. Accordingly, this contention of the Revenue is also negatived. No question of law, much less substantial questions of law arise for consideration in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that the assessee has not made application for recognition of the Pension Fund Trust to the Commissioner/Chief Commissioner, Salem, as per Part A of Schedule IV of the Act and, therefore, the payments made to the pension fund trust has to be disallowed. It was also found that the assessee had shown subsidy towards free passes issued during the financial year as receivable from Government on account of reimbursement. Though the assessee is following mercantile system of accounting, it had not credited the subsidy in the profit and loss account and had not shown the same as income. Accordingly, the assessment order was set aside and the matter was remitted to the assessing officer for assessment once over. 3. Aggrieved by the said o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount towards free passes, holding that the income would crystallize only on approval of assessee's claim for reimbursement by the competent authority, when the assessee is following a mercantile system of accounting and the income receivable by the assessee from the Government is to be treated as income of the present financial year. Therefore, it is prayed that the order of the Tribunal deserves to be interfered with. 5. Heard the learned counsel appearing for the Revenue and perused the materials available on record. 6. On a careful perusal of the order of the Tribunal, more particularly, para-8 of the order, we find no justification to differ with the findings of the Tribunal since the Tribunal has only stated that the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to look into this issue and thereafter, pass necessary orders in accordance with law. 7. In the light of the above order, this Court is of the considered opinion that the second question of law raised by the appellant is not a question of law and requires no adjudication. Accordingly, the same is rejected. 8. Insofar as the first question relating to recognition of pension fund trust to be recognised by the jurisdictional Commissioner is concerned, the Tribunal has dealt with the said issue in para-6 of its order. The Tribunal has interpreted Section 36 (1) (iv) of the Act to say that the recognition of the pension fund trust by the jurisdictional Commissioner is not necessary. For better clarity the said Section 36 (1) (iv) is ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the pension fund should be recognised by the jurisdictional Commissioner. There is no manner or intentment in the said provision which justifies the stand of the Department that the pension fund should be recognised only by the jurisdictional Commissioner and that the approval of the jurisdictional Commissioner is mandatory. In the above scenario, the Department cannot disallow the assessee of the contributions made to the pension fund on the ground that the pension fund has not been recognised by the jurisdictional Commissioner. 9. The Department has raised a further plea that Section 2 (38) of the Act defines recognised provident fund as one recognised by the jurisdictional Commissioner/Chief Commissioner. For better appreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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