TMI Blog2017 (5) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 27-4-2017 - SHRI B.P. JAIN, ACCOUNTANT MEMBER For The Appellant : Ms. Jyoti Narula, CA For The Respondent : Ms. Bedobani Chaudary, Sr. DR ORDER This appeal filed by the assessee is directed against the order of the CIT(A)-9, New Delhi, dated 04/03/2016 for A.Y 2011-12. 2. The assessee has raised the following grounds of appeal: 1. That the Revenue has erred in law and on facts in disallowing the contribution made to the recognized Provident Fund amounting to ₹ 15,36,414/-. 2. That the Revenue has erred in law and on facts in disallowing cash loss amounting to ₹ 18,28,459/-. 3. As regards Ground No. 1, the brief facts of the case are that during the course of assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent that definition of recognized provident fund' is an inclusive definition and the second condition of a provident fund established under a scheme framed under the Employees' Provident Funds Act, 1952 (19 of 1952) is independent from the first condition of recognition of the fund by the Chief Commissioner as lays down under section 2(38) of the Income Tax Act, 1961. Therefore, to claim deduction under section 38( 1)(iv) of the Income Tax Act, 1931 scheme should either be framed under the Employees Provident Funds or should be approved by Commissioner under the Income Tax Act, 1961. The appellant has relied on the following case laws:- b) (2009) 27 SOT 31 (DELHI) In the ITAT Delhi Bench G Deputy Commissioner of Income Tax , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inues to be // recognized by the Chief Commissioner or the Commissioner in accordance with the rules contained in Part A of the Fourth Schedule is said to be a recognized provident fund as per the first limb of the definition given in section 2(38). Further, as per the second limb of the definition, a recognized provident fund also includes a provident fund established under a scheme framed under the Employees Provident Fund Act, 1952. The definition given in section 2(38) thus is an inclusive definition and as per the second limb of the said definition which is independent of the first limb, it includes a provident fund established under a scheme framed under the Employees Provident Fund Act, 1952. It is pertinent to note here that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r clause (//) of sub-section (25) of section 10. In that view of the matter, we uphold the impugned order of the learned CIT(A) deleting the addition of ₹ 32,84,310 made by the Assessing Officer to the total income of the assessee on account of income earned by the assessee from provident fund contributions from other concerns holding that the same was exempt under section 10(25) and dismiss this appeal filed by the revenue 9. This decision in the case of Sahara India Employees Contributory Provident Fund [supra] has been followed by the Division Bench of the ITAT Delhi in the case of Udham Singh Nagar Dist. Co-operative Bank Ltd in ITA No. 3107/DEL/2010 vide order dated 08.04.2013. The relevant part is reproduced hereinbelow: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reliance placed by the ld. DR on the decision of the Hon'ble Delhi High Court in the case of Sony India [P] Ltd Vs. CIT reported in [2006] 285 ITR 213 [DEL] is on different facts where the issue before the Hon'ble High Court was not with respect to the two limbs of the decision u/s 2(38) of the Act and accordingly, this decision in the case of Sony India [P] Ltd Vs. CIT is not applicable in the present case. Thus Ground No. 1 of the assessee is allowed. 11. As regards Ground No. 2, the brief facts of the case are that during the course of assessment proceedings the A.O observed that the assessee has claimed cash loss of ₹ 18,28,459/-. The assessee company was asked to explain the same. After considering the reply filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, cannot be allowed as deduction. In other words he has accepted the fact that the expenses incurred were for the ongoing business of the assessee company. The income tax return filed by the assessee company has been accepted in the past and in future years also. Copy of assessment orders for the assessment years 2007-08 and 2013 -14 were place on record. 14. I am fully convinced with the arguments made by the ld. counsel for the assessee that there are no defects pointed out in the books of accounts and vouchers which were placed before the A.O and no addition on this account has been made in the past and also in the future years. In that view of the matter, the addition so made by the A.O is directed to be deleted and the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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