Case Law Details
CIT Vs Tamil Nadu State Transport Corporation (Salem) Ltd. (Madras High Court)
It is not in dispute that the Pension Fund Scheme has been jointly floated by the State Transport Corporations, as has been recorded by the Tribunal. The Tribunal has recorded a finding that State Transport Corporations operating in different districts in the State are signatories to the Trust Deed for setting up the Pension Fund Scheme. It is also not in dispute that the said fund has been recognized by the CIT-VII, Chennai.
In the above backdrop, a cursory reading of Section 36 (1) (iv) of the Act would reveal that nowhere in the said provision it is stated that the pension fund should be recognised by the jurisdictional Commissioner.
There is no manner or intentment in the said provision which justifies the stand of the Department that the pension fund should be recognised only by the jurisdictional Commissioner and that the approval of the jurisdictional Commissioner is mandatory.
In the above scenario, the Department cannot disallow the assessee of the contributions made to the pension fund on the ground that the pension fund has not been recognised by the jurisdictional Commissioner.
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