TMI Blog2016 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... r, is a finding of fact. Allowability of expenditure incurred on State Renewal Fund - Held that:- The said expenditure also goes to show that the renewal fund was set up by the State Government and was created with the object of providing a safety net for the workers likely to be effected by restricting in the State Public Enterprise and that a finding of fact has been recorded that the contribution made to the State Renewal fund is solely for the purposes of the welfare and benefit of the employees. In our view, it is for the assessee to decide whether any expenditure should be incurred in the course of business and expenditure of this nature being for business expediency is certainly allowable deduction under section 37(1) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts as aforesaid were disallowed by the Assessing Officer on the premise (i) that the prior period expenses pertained to earlier assessment years and is not required to be allowed, during the previous year relevant to the year under assessment. (ii) the Group Gratuity Scheme was not approved by the Commissioner which was mandatory and the same being not approved, the deduction under section 36(1)(v) was not allowable. (iii) State Renewal Fund is not an allowable expenditure within the provisions of section 37(1). 4. The assessee assailed the same before the learned Commissioner of Income-tax (Appeals) who allowed all the three expenses. The Tribunal also upheld the order of the Commissioner of Income-tax (Appeals) by dismissing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said expenditure was given during the year under appeal therefore the liability crystallised during the year and similar method was being regularly followed by the assessee consistently and when there is a finding recorded by the appellate authorities that the expenditure crystallised during the year, was written in the books this year and on year to year basis was claimed in the same manner and fashion was rightly claimed and allowed during the year, is a finding of fact. 8. In so far as disallowance of claim of ₹ 1,92,82,605 is concerned, admittedly, the assessee-respondent has claimed to have applied for according approval of the Group Gratuity Scheme to the concerned Commissioner on March 31, 1981. Once the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue. The Assessing Officer ought not to have made a repeated addition merely for this purpose and a litigation of this nature ought not to have come before this court as appeals all throughout is being allowed year after year. On the one hand the Revenue does not decide the application for approval and the amount is being disallowed by the Assessing Officer from year to year which is not at all justified. The Revenue is well advised not to make repetitive additions/disallowance for this purpose and expose its weakness before the courts as on the one hand application for according approval has not been granted and for inaction of the Commissioner amounts are disallowed and to incur wasteful public money either way as at least the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal has come to a finding of fact that it was a legal obligation of the respondent-assessee towards contribution of the said amount to the State Renewal Fund and there being a legal obligation as well in our view the Tribunal has come to a correct conclusion. 10. Taking into consideration the facts and circumstances on all the 3 questions raised, in our view the deletion of disallowance is based on material evidence on record and is a finding of fact, no question of law much less substantial question of law can be said to emerge. We find no perversity or illegality in the order impugned so as to call for interference of this court. 11. Accordingly the appeal being devoid of merits, is hereby dismissed. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
