TMI Blog1998 (9) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... SUBBULAKSHMY. JUDGMENT The judgment of the court was delivered by R. Jayasimha Babu J. -There are two references before us one by the Revenue and the other at the instance of the assessee. Both the references relate to the assessments made for the year 1976-77 under the provisions of the Income-tax Act, 1961. Two questions referred at the instance of the Revenue are: "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 9,75,485 was allowable as a deduction with reference to the Employees' Provident Funds Act, 1952, read with section 2(38) of the Income-tax Act, 1961? (2) Whether, on the facts and in the circumstances of the case, the provision made for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproved provident fund for the purpose of the Income-tax Act even though such a fund has not received the express approval of the Commissioner of Income-tax. The assessee herein did not claim that fund to which contribution has been made was one set up under the scheme of the Employees' Provident Funds Act. On the other hand, it sought exemption from the provisions of that Act for the scheme framed by it on the ground that the benefits available to the employees under that scheme were no less than those available under the provisions of the Employees' Provident Funds Act. The order granting exemption from the provisions of the Act, cannot be treated as an order recognising the scheme as one framed under the Act. The very object of exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation, chooses to credit that amount to the provident fund account of the concerned employee of the Government, does not render the payment paid by the Corporation a contribution by the Corporation to the provident fund maintained by the Government for the benefit of its employees. The amount so paid to the Government is not in any way affected by section 36 of the Act. The payment so made is deductible under section 37 of the Act, being part of the business expenditure of the assessee. This question is therefore answered in favour of the assessee and against the Revenue. The questions referred to us at the instance of the assessee are: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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