INCOME TAX ACT, 1961

Section 36(1)(iv)

Business deduction under section 36(1)(iv) - Allowability - Contribution to pension fund -

Assessee claimed contribution to pension fund in income and expenditure account. AO alleged that any sum paid by way of contribution towards a pension scheme as referred to in section 80CCD on account of an employee to the extent it does not exceed 10% of the salary of the employee in the previous year was not liable to be deducted and was not exempt from tax. AO further alleged that assessee did not furnish working of claim and disallowed 75% of amount of claim.Held: CIT(A) considered fact that Gujarat Maritime Board Employees Pension Trust Fund was duly approved by CIT and contribution was paid in compliance of the terms of the appointment on the respective erstwhile state government employees in the earlier year, which was constantly allowed by the department. Thus, CIT(A), reversed finding of AO and allowed assessee's appeal. Tribunal affirmed the view of CIT(A) after holding that revenue was not able to controvert findings of CIT(A). The issue relating to contribution to pension fund under section 36(1)(iv) read with rule 87 and 88 of the IT Rules, 1962 would not constitute a question of law and would be in the realm of factual issue. Tribunal observed in its order that no evidence was led by revenue to dispute the correctness of the findings recorded by CIT(A).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 to 2014-15

INCOME TAX ACT, 1961

Section 11 Section 32

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