Adani Infrastructure Management Services Ltd Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad has ruled that contributions made by employers to an Employees’ Superannuation Fund are an allowable deduction, provided the payment is made before the due date for filing the income tax return under Section 139(1) of the Income-tax Act, 1961, and the superannuation fund itself is an “approved fund.” The ruling came in the case of Adani Infrastructure Management Services Ltd Vs DCIT (ITAT Ahmedabad) for Assessment Year (AY) 2020-21.
Background of the Case
Adani Infrastructure Management Services Ltd. filed its income tax return for AY 2020-21, declaring a total income of ₹30,59,51,250. During the processing of the return under Section 143(1) of the Act, the Centralized Processing Center (CPC) made an addition of ₹13,03,820, invoking the provisions of Section 36(1)(va) of the Act. This addition comprised two components:
- A disallowance of ₹11,03,830 related to the employee’s contribution to the National Pension Scheme.
- A disallowance of ₹1,99,992 on account of employees’ contribution to the superannuation fund.
Aggrieved by this assessment, the company appealed to the Commissioner of Income-tax (Appeals) [CIT(A)]. The CIT(A) provided partial relief to the assessee. The disallowance of ₹11,03,830 pertaining to the National Pension Scheme contribution was deleted. However, regarding the ₹1,99,992 disallowance for the Employees’ Superannuation Fund, the CIT(A) directed the Assessing Officer (AO) to verify the nature and status of the fund before granting the deduction.
