2013 (5) TMI 200

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....sessing Officer under section 43B of the Income Tax Act, 1961, while clause (b) of section 43B clearly states that any sum payable by way of contribution to provident fund is not allowable. ii) The order of the Ld. Commissioner of Income Tax (A) be set aside and that of Assessing Officer be restored. 3. The facts of the case are that the assessee is a cooperative society engaged in supply of sugar cane of it's members to sugar mills and trading of fertilizer with members etc. Return declaring NIL income was filed on 31.10.2007. During the course of assessment proceedings, it was gathered by the Assessing Officer that amount payable under the head provident fund was at Rs. 68,09,589/-. The assessee was thus required to explain as to why pr....

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....lowing case laws in support of its contention. i) Orissa State Financial Corporation vs. DCIT (2006) 99 TTJ (Ctk) 316. ii) A.C. vs. Ganesha Kant Tea Co. (P) Ltd. 250 ITR 107 (ITAT Calcutta). iii) CBDT Circular No. 387 dated 6.7.1984. 5. Considering the above, Ld. Commissioner of Income Tax (A) referred the provisions of section 40(A)(9) as under:- "No deduction shall be allowed in respect of any sum paid by the assessee as an employers towards the setting up or formation of, or as contribution to, any fund, trust, company, association of persons, body of individuals, society registered under the Societies Registration Act, 1980 (21 of 1860), or other institution for any purpose, except where such sum is so paid, for the purposes and to....