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TMI Blog1999 (3) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... its earlier judgment in the case of CIT v. Hyderabad Asbestos Cement Products Ltd. [1988] 172 ITR 762 (AP). The Revenue had filed a special leave petition against this judgment but it was dismissed on the ground of undue delay. The facts of these appeals are similar. The facts now set out are of Civil Appeal No. 2398 of 1994. The assessee had in the relevant assessment year (A. Y. 1981-82) made a contribution to an approved superannuation fund. For the current year, the amount contributed was Rs. 2,70,911, and for the past five years it was an aggregated amount of Rs. 2,14,785 calculated on the basis of 25 per cent. of the employees' dues on account of past service. The Income-tax Officer allowed the deduction only to the extent of 80 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fund, subject to such limits as may be prescribed for the purpose of recognising the provident fund or approving the superannuation fund, as the case may be ; and subject to such conditions as the Board may think fit to specify in cases where the contributions are not in the nature of annual contributions of fixed amounts or annual contributions fixed on some definite basis by reference to the income chargeable under the head 'Salaries' or to the contributions or to the number of members of the fund." Rules 87 and 88 of the Income-tax Rules, 1962, are relevant. They read thus : " 87. Ordinary annual contributions.---The ordinary annual contribution by the employer to a fund in respect of any particular employee shall not exceed twenty-f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come chargeable under the head 'Salaries' or to the contributions or to the number of members of the fund, namely : 1. The total amount of contribution that shall be taken into account for the purposes of this notification shall not exceed twenty-five per cent. of the employee's salary for each year of his past service with the employer as reduced by the employer's contribution, if any, to any provident fund (whether recognised or not) in respect of that employee for each such year. 2. Subject to condition 1, eighty per cent. of the amount actually paid by the employer by way of contribution during any previous year shall be the deductible allowance. 3. One-fifth of such deductible allowance shall be allowed in the assessment year relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere are annual contributions of fixed amounts but, for the purposes of these appeals, we will proceed on the basis that they are not and that the Board was, therefore, entitled to make conditions that would apply. Even so, the question is whether the conditions which were laid down in the said notification fall outside the power of the Board in this behalf. For this purpose, the said notification must be analysed. The first condition is that the total amount of the contribution shall not exceed 25 per cent. of the employees' salary and there is no dispute that this is a condition which the Board was empowered to impose, having regard to the provisions in this behalf in rule 88. The second condition is that only 80 per cent. of the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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