TaxTMI 
TaxTMI 
2014 (1) TMI 251
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....on 40A(9) of the Income-tax Act, 1961, is not in accordance with the facts prevailing in the case. The disallowance so made be deleted." The facts of the case, in brief, are that the assessee-company is an undertaking of the Government of Maharashtra established for providing Warehousing facilities. The assessee has contributed a sum of Rs. 18,61,700 towards MSWC Karmachari Welfare Fund and claimed the same as business expenditure. The Assessing Officer following his order for the assessment years 2003-04 to 2005-06 disallowed the claim of the assessee on the ground that the deduction for such contribution is prohibited by section 40A(9) of the Income-tax Act. In appeal the learned Commissioner of Income-tax (Appeals) following his orders ....
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....red by the second exception provided in section 40A(9) of the Act, as it has been paid as mandated by law. 10. In order to test the efficacy of the assessee's plea, the moot question to be addressed is as to whether the Regulations in terms of which the payment has been made by the assessee, carry the force of law or not. In this connection, we may refer to the judgment of the hon'ble Supreme Court in the case of U. P. Warehousing Corporation v. Vijay Narayan Vajpayee [1980] 3 SCC 459 relied upon by the appellant before us. The status of the entity before the hon'ble Supreme Court was analogous to that of the appellant before us. As has been observed earlier, the appellant is a corporation established by the State Government in exercise of....
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....ature. It was clear from the Oil and Natural Gas Commission Act, 1954, that the commission created by it, acts as an agency of the Central Government. Similarly, by virtue of the Industrial Finance Corporation Act, 1948, the Finance Corporation is under the control and management of the Central Government. The Life Insurance Corporation is similarly owned and managed by the government and can be dissolved only by the Government in view of the provisions of the Life Insurance Act, 1956. All the three statutes constitution the three statutory corporations enabled them to make regulations which provide, inter alia, for the terms and conditions of employment and services of their employees. Questions arose, (i) whether the regulations have the ....
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....ations framed by the appellant Corporation for the terms and conditions of employment and services of their employees carry a statutory force. In this context, we have perused the Maharashtra State Warehousing Corporation (Staff) Service Regulations and find that the same have been framed with the previous sanction of the Government of the Maharashtra in exercise of the powers conferred by section 42 of the Warehousing Corporation Act, 1962 (58 of 1962). Therefore, the impugned contribution made by the appellant as an employer towards the Karmachari Welfare Fund falls within the expression 'as required by or under any other law' for the purposes of section 40A(9) of the Act. As a consequence, such an amount is not disallowable in terms of s....