TMI Blog1985 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the court was delivered by PATHAK J.- This appeal by special leave is directed against the judgment of the Calcutta High Court answering the following question of law against the Revenue on a reference made by, the Income-tax Appellate Tribunal: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the difference between Rs. 2,09,920.88 and the amount that had been allowed by the Appellate Assistant Commissioner was a business expenditure incurred by the assessee in the relevant previous year and in allowing the same as a deductible expenditure ? " The assessee, who is the respondent before us, carries on business as electrical engineers and contractors with its head office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contributions made by the assessee constituted a revenue expenditure falling within the terms of clause (xv) of sub-section (2) of section 10 of the Indian Incometax Act, 1922. The Appellate Assistant Commissioner, however, dismissed the appeal on the ground that the provisions of clause (c) of sub-section (4) of section 10 of the Act barred the allowance claimed by the assessee inasmuch as no effective arrangements had been made by the assessee to secure that tax would be deducted at source from the amounts paid finally to the employees by the society in terms of the policies. The Income-tax Appellate Tribunal allowed in part the second appeal preferred by the assessee, holding that all the contributions made in the relevant year by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear November 1, 1957, to October 31, 1958, the assessee claimed deduction of all the contributions made by it towards the payment on the policies. The Income-tax Officer allowed Rs. 27,069, being the contribution made in the relevant previous year, on the footing that the offending rules had been amended, but he did not allow the claim in respect of contributions made in earlier years. The assessee appealed against the disallowance of the claim respecting contributions made in earlier years. Before the Appellate Assistant Commissioner, a statement was filed by the assessee showing the total contribution made by the assessee to the pension fund and the payment made by the society in the assessment years 1959-60 and 1960-61 amounting to pound ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion could be said to have been paid in the relevant accounting year. Learned counsel has cited Indian Molasses Co. (P.) Ltd. v. CIT [1959] 37 ITR 66 (SC), CIT v. Anderson Wright Ltd. [1962] 46 ITR 715 (Cal), CIT v. Indian Molasses Co. P. Ltd. [1970] 78 ITR 474 (SC) and CIT v. Lakshmi Ratan Cotton Mills Co. Ltd. [1976] 104 ITR 319 (All). The contention appears to us to be without substance. It is true that the payments were made as contributions to the premium in the earlier years. But they were made at a time when the rules permitted the assessee to receive, back the amounts contributed by it under the plan. According to the construction put on the rules, it was deemed that the assessee continued to retain its hold on those amounts. It c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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