2011 (4) TMI 1486

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....ER RAJENDRA SINGH (AM) This appeal by the revenue is directed against the order dated 30. 11. 2009 of CIT(A) for the A.  Y. 2006-07.  The only dispute raised is regarding disallowance of the amount paid to Employees' Recreation Club under the provisions of section 40A(9) of the Income-tax Act.  The assessee which is a government company had made a contribution of Rs. 10 lacs duri....

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....which the revenue is in appeal before the tribunal.   2.  Before us the Learned AR for the assessee submitted that the case of the assessee was covered by the judgment of Hon'ble High Court of Mumbai in case of CIT Vs Bharat Petroleum Corporation Ltd.  (252 ITR 43) in which payment to club formed by the assessee for welfare of the employees has been found allowable.  The Lea....

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....sessee had reimbursed the expenses incurred by the club formed for the welfare of the employees.  The High Court held that the reimbursement of expenses incurred by the club did not constitute contribution under section 40A(9) and therefore could not be disallowed under the said section.  In this case the factual position is not clear as to whether the payment made by the assessee was to....