AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 300
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....ct, 1961 (in short 'the Act'). 2. The ground of appeal raised by the assessee in both the appeals reads as under: "1. That on the facts and in the circumstances of the case the learned CIT(A)Panchkula has erred in law and facts in upholding the addition of Rs. 56,33,188/- in ITA No.785/Chd/2011 and Rs. 2289,137/- in ITA No.945/Chd/2011 for actual payment of pension to the employees out of contribution by the appellant to the pension fund during the year being unrecognized as per the directions of the Hon'ble ITAT Chandigarh Bench B to adjudicate the issue." 3. Both the appeals relating to the same assessee on similar issue were heard together and are being disposed off by this consolidated order for the sake of convenienc....
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.... later the Pension Scheme had been scrapped and the said amounts were reverted back to the existing P.F. Scheme in the year 2004. However, in the above mentioned replies, the assessee has not made any submissions nor have given any details on this aspect of the issue. Instead, the assessee has requested that the deduction of the amount of actual payment of pension made during the year may be allowed in view of the provisions of section 37(1) and not under section 36(1)(iv). The Assessing Officer thus held that the plea of the assessee that the said expenses are allowable on account of pension being paid to the employees is not admissible at this juncture. The alternate plea of the assessee that the said deduction is also allowable under sec....
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....h are available at pages 41 and 39 of the Paper Book for the respective years and the said amount was claimed as allowable during the year under consideration. The learned A.R. for the assessee further pointed out that during assessment year 2002-03, the contribution to pension fund was Rs. 1,21,97,699/- and payment on account of pension was Rs. 22,89,137/-/ In assessment year 2003-04 the contribution of pension fund was Rs. 32,07,989/- and payment on account of pension was Rs. 56,33,188/-. It was pointed out by the learned A.R. for the assessee that in assessment year 2003-04 the deduction may be restricted to the contribution i.e. Rs. 32,07,989/-. 9. The learned D.R. for the Revenue placed reliance on the order of the Assessing Officer....
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....ck to the Assessing Officer to examine the claim of the assessee afresh and to pass an order in accordance with law. 12. The claim of the assessee before the Assessing Officer in the second round of proceedings was that the said amount was first not contributed to a recognized pension scheme and was also not contributed to the P.F. scheme. However, the assessee during the year under consideration had made actual payments of pension to some of the employees who had retired during the period under consideration and the said amounts being paid to the employees should be allowed as a deduction in the hands of the assessee and the details in respect thereof were available in the Audit Report. The Assessing Officer and the CIT (Appeals), howev....
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....NDS OF RS.1.15 CRORES. (AS PER ANNEXURE-111) 15,39,795.00 6. RECOVERY-COMMUTED PENSIONER (AS PER ANNEXURE- -11 ) 3,90,511.00 7. INTEREST CHARGED ON PENSION FUND FOR THE YEAR ENDED ON 31.3.2002. (AS PER ANNEXURE -IV) 15,04,795,00 TOTAL 4,13,16,323.51 (B) 1 VARIOUS PAYMENTS MADE TO PENSIONERS DURING THE YEAR ENDED ON 31.3.2002 AS PER ANNEXURES-V, VI & VI I ATTACHED. 22,89,137,00 2 BANK BALANCE 3,000.00 3 BALANCE OUTSTANDING 2,75,24,186.51 4 ICICI BONDS OF RS. 1.15 CRORES 1,15,00,000.00 TOTAL 4,13,16,323.51 13. Similarly in assessment year 2003-04 the pension fund Balance Sheet was filed on record and the statu....
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....otaled to Rs. 22,89,137/-. In assessment year 2003-04, the total contribution to the pension fund was Rs. 32,07,989/- and the payments made to the pensioners as per AnnexureV and VI totaled to Rs. 56,33,188/-. We find merit in the claim of the assessee that the expenditure incurred on payments being made to the pensioners is allowable in the hands of the assessee as revenue expenditure. In assessment year 2002-03 the total contribution to the pension fund during the year was Rs. 1.22 crores out of which Rs. 22,89,137/- were actually disbursed to the pensioners and hence the said expenditure of Rs. 22,89,137/- is allowable as an expenditure in the hands of the assessee for assessment year 2002-03. In assessment year 2003-04 the total contrib....