1973 (9) TMI 49

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....der section 66(1) of the Indian Income-tax Act, 1922, at the instance of the Commissioner of Income-tax, U. P., Kanpur. At the outset, we are constrained to say that this case has given us a great deal of difficulty, because the Income-tax Appellate Tribunal has not referred to the relevant provisions bearing on the question involved either in its appellate order or in the statement of the case....

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....ed fund during the relevant previous year. The Commissioner accorded recognition to the fund by his order dated October 28, 1963, with effect from May 31, 1960. However, he issued instructions to the Income-tax Officer to grant relief to the assessee in respect of its contributions to the fund relating to a period prior to the date of recognition. The Tribunal has relied mainly on these instructio....

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....that for the purposes of the Indian Income tax Act, 1922, the fund shall be deemed to be a recognised provident fund within the meaning of Chapter IX-A of the said Act. In view of this provision the order passed by the Commissioner recognising the fund loses all significance. The fund shall be deemed to be a recognised fund from the date it came into existence, by virtue of section 9 of the Employ....

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....e question as to whether the fund was recognised by the Commissioner or not becomes immaterial. In such a situation the question will have to be decided with reference to section 10(2)(xv) read with section 10(4)(c) of the Act. Under the latter provision no allowance can be made in respect of a payment to a provident fund unless the employer has made effective arrangements to secure that tax shall....