This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Contributions to unapproved and unrecognized funds allowable as deduction if genuine in nature
Case Law Details
- Case Name
- Pr. Commissioner of Income Tax Vs M/s State Bank of India (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Bombay High Court
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
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...
