TMI Blog2006 (6) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... approved, granting deductions of amounts paid into unapproved funds under the cover of section 37 of the Act may defeat the legislative intent and frustrate the very purpose underlying the specific provisions made thereunder. We, therefore, see no merit even in the alternative contention urged by appellant that what does not fall under section 36 may nevertheless fall under section 37 and be granted by way of a deduction. - no merit in this appeal which fails and is hereby dismissed - - - - - Dated:- 2-6-2006 - Judge(s) : T. S. THAKUR., SHIV NARAYAN DHINGRA. JUDGMENT The judgment of the court was delivered by T.S. Thakur J.-This appeal under section 260A of the Income-tax Act, 1961 assails the correctness of an order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner was of the view that the contributions could not be allowed as deductions even under section 37 of the Act. Relying upon Malwa Vanaspati and Chemical Co. Ltd. v. CIT [1985] 154 ITR 655 (MP), CIT v. Travancore Titanium Products Ltd. (No. 2) [1993] 203 ITR 714 (Ker) and Noshirwan and Co. P. Ltd. v. CIT [1970] 77 ITR 822 (MP), the Commissioner held that since gratuity and superannuation funds were specifically covered under section 36 of the Act, the same could not be considered as admissible deductions under section 37 which was a residuary provision applicable only in cases which do not fall under any one of the provisions of sections 30 to 36. A further appeal before the Income-tax Appellate Tribunal against the order passed by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee by way of contribution towards a recognized provident fund or an approved superannuation fund". Clause (v) of section 36(1) similarly provides for deduction of "any sum paid by the assessee by way of contribution towards an approved gratuity fund provided the same is under an irrevocable trust". A plain reading of section 36(1)(iv) and (v) makes it manifest that deductions thereunder are admissible only if the employer pays the contributions towards a recognised provident fund, an approved superannuation fund or an approved gratuity fund. It is common ground that the funds to which the appellant had contributed in the present case were not approved either during the year under consideration or at any time up to the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payments. That brings us to the alternative submission urged by Mr. Aggarwal that a deduction could, in any case, be granted under section 37 of the Act no matter that it was not admissible under section 36 thereof. Section 37 is a residuary provision dealing with deductions that are available while computing income chargeable to tax under the head "Profit and gains of business or profession". A plain reading of the said provision would show that any expenditure which is wholly and exclusively laid out or expended by the assessee for purposes of his business or profession is allowable as a deduction provided such expenditure is not of the nature described in sections 30 to 36 of the Act. The deduction which the appellant claims in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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