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TMI Blog2022 (9) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... of I.T.A. No. 1414/Kol/2007 for the Assessment Year 2004-2005. The appeal was admitted to decide the following substantial question of law:- ".....................The legal issue that arises is since the initial contribution is permitted to be deducted from the income and annual contribution to a pension fund may also be deducted from the income of the employer, would an ad hoc or lump sum interim contribution, in such circumstances, be also eligible for deduction. .................." We have heard Mr. Tilak Mitra, learned standing counsel appearing for the appellant and Mr. J.P. Khaitan, learned senior advocate assisted by Mrs. Nilanjana Banerjee Pal, learned advocate appearing for the respondents. The issue involved in this appeal p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order aggrieved by the contention raised by the assessee and after taking note of the decision of the Co-ordinate Bench of the Tribunal in the case of Asst. Commissioner of Income Tax, Cir. 6(3) Vs. Glaxo Smithkline Pharmaceuticals, Mumbai, 2011 (1) TMI 1530 - ITAT Mumbai allowed the assessee's appeal. We have carefully considered the submissions of either side and perused the materials on record. Section 36 of the Act deals with other deductions. Sub-Section (1) of Section 36 states that deduction provided for in the clause enumerated thereunder shall be allowed in respect of matters dealt with therein in computing the income referred to Section 28. Claus-(iv) is under Section 36(1) would be relevant for our case which is quoted her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant for our case. "Ordinary annual contributions. 87. The ordinary annual contribution by the employer to a fund in respect of any particular employee shall not exceed [twenty-seven] per cent of his salary for each year as reduced by the employer's contribution, if any, to any provident fund (whether recognised or not) in respect of the same employee for that year. Initial contributions. 88. Subject to any condition which the Board may think fit to specify under clause (iv) of sub-Section (1) of Section 36, the amount to be allowed as a deduction on account of an initial contribution which an employer may make in respect of the past services of an employee admitted to the benefits of a fund shall not exceed twenty-five per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssitated due to short-fall discovered in the course of actuarial valuation of the funds which is in exceptional circumstances and has been made to ensure that the superannuation funds will be able to discharge its obligation to the employees. The learned Tribunal bearing the above principle in mind and also taking note of the decision of the co-ordinate bench of the Tribunal in Glaxo Smithkline Pharmaceuticals (supra) allowed the assessee's appeal. The revenue had challenged the order passed by the learned tribunal in the case of Glaxo Smithkline Pharmaceuticals before the High Court of Judicature at Bombay in Income Tax Appeal No.2232 of 2011 which was dismissed by judgment dated 6th March, 2013. However, we are conscious of the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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