TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 354
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....f facts of the case are that the fringe benefit tax for short FBT assessment was completed u/s. 115WE(3) of the Act on 28.10.2008 determining the value of taxable fringe benefits at Rs. 4,92,016/-. The said order passed under section 115WE(3) was rectified under section 154 of the Act on 29.10.2009. The total value of fringe benefits were revised to Rs. 5,16,476/-. Subsequently the case was reopened as per provision of section 115WG(c) of the Act by issuing notice under section 115WH of the Act on 22.10.2010 on the ground that an amount of Rs. 1,13,42,857/- relating to payments made for pension fund which is a superannuation fund is not considered as the value of fringe benefits in the assessment under section 115WE(3) which is chargeable to fringe benefit tax and has escaped assessment. 4. In response to the notice issued under section 115WH the assessee filed a letter on 09.11.2010 to treat the return filed by the assessee under section 139(1) for the assessment year 2006-07 on 30.11.2006 as return filed in compliance of notice under section 115WH of the Act. Thereafter, a notice under section 142(1) was issued to the assessee on 16.12.2011. The assessee submitted written explan....
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....ion fund" means a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Chief Commissioner or Commissioner] in accordance with the rules contained in part B of the Fourth Schedule." 10. A close reading of the above provision goes to speak that any contribution to approved superannuation fund requires approval of the Chief Commissioner or Commissioner invariably in pursuance of the Rules contemplated in part B of the Fourth Schedule. Let us examine the fourth schedule provided in the Act. THE FOURTH SCHEDULE PART A RECOGNISED PROVIDENT FUNDS36 [See sections 2(38), 10(12), 10(25), 36(1)(iv), 87(1)(d), 111, 192(4)] Application of Part. 1. This Part shall not apply to any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies. Definitions. 2. In this Part, unless the context otherwise requires,- (a) "employer" means any person who maintains a provident fund for the benefit of his or its employees, being- (i) a Hindu undivided family, company, firm or other association of persons, or (ii) an individual engaged in a business or profession the profits and gains whereof are assessable to in....
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....rant the continuance of the approval. (2) The 46[Principal Chief Commissioner or] Chief Commissioner or 46[Principal Commissioner or] Commissioner shall communicate in writing to the trustees of the fund the grant of approval with the date on which the approval is to take effect, and, where the approval is granted subject to conditions, those conditions. (3) The 46[Principal Chief Commissioner or] Chief Commissioner or 46[Principal Commissioner or] Commissioner shall communicate in writing to the trustees of the fund any withdrawal of approval with the reasons for such withdrawal and the date on which the withdrawal is to take effect. (4) The 46[Principal Chief Commissioner or] Chief Commissioner or 46[Principal Commissioner or] Commissioner shall neither refuse nor withdraw approval to any superannuation fund or any part of a superannuation fund unless he has given the trustees of that fund a reasonable opportunity of being heard in the matter. Conditions for approval. 3. In order that a superannuation fund may receive and retain approval, it shall satisfy the conditions set out below and any other conditions which the Board may, by rules, prescribe- (a) the fund....
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....d shall be deemed for the purpose of income-tax to be the income of the employer of the previous year in which it is so repaid. Deduction of tax on contributions paid to an employee. 486. Where any contributions made by an employer, including interest on contributions, if any, are paid to an employee during his lifetime in circumstances other than those referred to in clause (13) of section 10, tax on the amounts so paid shall be deducted at the average rate of tax at which the employee was liable to tax during the preceding three years or during the period, if less than three years, when he was a member of the fund, and shall be paid by the trustees to the credit of the Central Government within the prescribed time and in such manner as the Board may direct. Deduction from pay of and contributions on behalf of employee to be included in return. 7. Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to an approved superannuation fund, he shall include all such deductions or payments in the return which he is required to furnish under section 206. 11. The PART A of THE FOURTH SCHEDULE which deals wi....
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....9; Pension Fund set up under the said statutory Employees' Pension Scheme @8.33% of the employees pay as provided under Clause 3 of the scheme. 4). That such employer's contribution towards the employees' pension fund was paid to the Employees Provident Fund Organization in its Account No. 10 prescribed for this purpose. 5). That the break of the company's contribution to the Employees Pension Fund for the financial year 2005-06 is as follows:- i) In respect of Head Office Employees 1,40,081/- ii] In respect of Head Office Employees 1,12,02,776/- Total 1,13,42,857/- The relevant evidences for verification of such payment are being produced before your honour for necessary verification. 6). That we are enclosing herewith a copy of The Employees' Pension Scheme, 1995 under the provisions of which the above mentioned contributions were made by the company as an employer. We hope, this proves beyond doubt that the amount paid by the company was a statutory contribution paid to a scheme framed by the Central Government under the provisions of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952 and not a contribution to any "....