Disallowance u/s. 40A(9) for Statutory Corporations cannot be made as their Service Regulations have ‘force of law’ – ITAT Pune

Maharashtra State Warehousing Corporation Vs ACIT (ITAT Pune)- Service Regulations framed by the appellant Corporation for the terms and conditions of employment and services of their employees carry a statutory force. In this context, we have perused the Maharashtra State Staff Warehousing Corporation (Staff) Service Regulations and find that the same have been framed with the previous sanction of the Government of the Maharashtra in exercise of the powers conferred by section 42 of the Warehousing Corporation Act, 1962 (58 of 1962). Therefore, the impugned contribution made by the appellant as an employer towards the Karmachari Welfare Fund falls within the expression ‘as required by or under any other law’ for the purposes of section 40A(9) of the Act. As a consequence, such an amount is not dis-allowable in terms of section 40A(9) of the Act.