Law: Income Tax Act, 1922

Section: 10(2)(xv)

Income-tax Act, (XI of 1922)---S. 10(2)(xv)--Business expenditure--Year in which allowable-¬Policies taken by assessee in names of employees pursuant to a plan for pension and insurance for employees--Amount of assessees contribution to premium of such insurance policies disallowed in year of payment on ground that assessee had control over disposal of funds--Amendment to plan introduced when Rules and Plan left no control with assessee and made amounts due under policies payable to employees--Amount earlier disallowed was allowable in year in which said amendment was effected as a business expenditure incurred by assessee it being a deductible expenditure. C.I.T. v. Anderson Wright Ltd. (1962) 46 I T R X115 (Cal.); C.I.T. v. Indian Molasses Co. P. Ltd. (1970) 78 I T R 474 (S C); C.I.T. v. Lakshmi Ratan Cotton Mills Co. Ltd. (1976) 104 I T R 319 (All.) and Indian Molasses Co. P. Ltd. v. C.I.T. (1959) 37 I T R 66 (S C) ref. JUDGMENT R. S. PATHAK, J.- This appeal by special leave is directed against the judgment of the Calcutta High Court answering the following question of law against the Revenue :„on a reference made by the Income-tax Appellate Tribunal "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the difference between Rs.2,09,920,88 and the amount that had been allowed by the Appellate Assistant Commissioner was a business expenditure incurred by the assessee in the relevant previous year and in allowing the same as a deductible expenditure?" The assessee, who is the respondent before us, carries on business as electrical engineers and contractors with its head office in Calcutta and branches in different parts of the country. The assessee put into effect a pension and life assurance plan for its European employees in about the year 1948. Pursuant to the plan, it took out policies with the Scottish Widows Fund and Life Assurance) Society in the name of those employees. Under the plan, rules were framed and the assessee paid its part of the contribution to the premium in respect of the policies taken with the Society. The employees whose lives were insured also paid their portion of the premium and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492