2011 (3) TMI 1032

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....n the merits in holding that duty drawback is to be included while computing deduction under section 80-IA of the Income-tax Act, 1961 ?   (c) Whether the learned Income-tax Appellate Tribunal erred in law and on the merits in deleting the addition on account of provision for pension ?   (d) Whether the learned Income-tax Appellate Tribunal erred in law and on the merits by holding that disallowance of provision for pension could not be disallowed under section 43B of the Income-tax Act, 1961 ?"   2. In so far as question No. (a) is concerned, after reading the order of the Commissioner of Income-tax (Appeals) as well as the Income-tax Appellate Tribunal, we found that it does not arise for consideration in this appe....

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....rovisions of section 43B(b) of the Act on the ground that even if it was an ascertained liability, the deduction could not be allowed in the absence of contribution to the pension fund. The Commissioner of Income-tax (Appeals), however, reversed the aforesaid decision of the Assessing Officer. Section 43B(b) of the Act reads as under :   "43B. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of-. . .   (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees."   5. Section 43B(b) is inserted with a view not to allo....

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.... are actually made to those employees, the same would not be entitled for deduction. Clause (b) of section 43B of the Act mentions about provident fund, superannuation fund, gratuity fund and is followed by "any other fund for the welfare of the employees". This last clause thus has to take its colour from the previous clauses and has to be read ejusdem generis.   7. It is stated at the cost of repetition that the intention of the Legislature behind enacting section 43B(b) of the Act was to disallow the statutory liabilities. The Commissioner of Income-tax (Appeals), under these circumstances, was right in his opinion that the Legislature never intended to disallow a claim for an ascertained liability which is computed scientificall....