2004 (12) TMI 55

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....d Mr. S. Ravi, learned counsel for the assessee and Mr. S.R. Ashok, learned senior standing counsel for the Revenue. The instant reference arises out of an order of the Income-tax Appellate Tribunal in I.T.A. No. 1237/Hyd. of 1992 pertaining to the assessment year 1984-85. It is at the instance of the assessee that the following two questions have been referred to us for our opinion: "1. Whe....

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....ions made by it to M/s. Raasi Cement Employees' Welfare Trust and M/s. Raasi Cement Executives Welfare Trust, debited to staff welfare expenses account was disallowed by the Income-tax Officer on the ground that the same was capital contribution in terms of section 40A(9) of the Income-tax Act (for short "the Act"). The disallowance was confirmed by the first appellate authority. On further appeal....

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....on to, any fund, trust, company, association of persons, body of individuals, society registered under the Societies Registration Act, 1860 (21 of 1860) or other institution for any purpose, except where such sum is so paid, for the purposes and to the extent provided by or under clause (iv) or clause (v) of sub-section (1) of section 36, or, as required by or under any other law for the time bein....

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.... employees under an irrevocable trust. Admittedly, the payments in question do not fall either under clause (iv) or clause (v) of sub-section (1) of section 36 of the Act. It also appears that the main grievance of the assessee, as can be seen from the order of the Income-tax Officer was that the provision of section 40A(9) having been brought in with retrospective effect was unconstitutiona....