Contributions to unapproved and unrecognized funds allowable as deduction if genuine in nature

Pr. CIT Vs M/s. State Bank of India (Bombay High Court) Conclusion: Where employer had incurred genuine expenditure for the welfare and the benefit of the employees, contributions to unapproved and unrecognized funds had to be allowed as a deduction. Held: Assessee claimed deduction of expenditure of Rs.50 lakhs towards contribution to a fund created for the health care of the retired employees. Revenue argued that such fund not being one recognized under Section 36(1)(iv) or (v), claim of expenditure was hit by the provisions of Section 40A(9). It was held the very purpose of insertion of sub...