Law: Income Tax Act, 1922

Section: 10,10(4)(d),

Income tax Act (XI of 1922)----S. 10(4)(d), Explanation [as added by Finance Act (L of 1975)] ¬Expression "perquisites or other benefits" Employers' contribution to recognized Provident Fund Not covered by expression "perquisite or other benefits" I.T.O. including assessee's contribution to recognized Provident Fund maintained by it for purpose of S.10(4)(d) on ground that such contribution was covered by term "perquisites or other benefits" used in provision Two appeals filed against such inclusion proved futile Held, by Finance Act, 1975 Explanation No. 3 to cl.(d) of subsection (4) of S. 10 of Act was added which provided that expression "perquisites or other benefits" as used in cl. (d) did not include employer's contribution ` to a recognised provident fund ¬Explanation 3 to S. 10 (4) (d) did not constitute any addition or subtraction to S. 10 but was merely explanatory and enacted with object to clarify existing provision of law for guidance and thus it was immaterial if it did not exist on statute book when impugned orders were passed Clause (d) of subsection (4) of S. 10 should have been construed even prior to addition of said provision as to exclude employer's contribution to recognized provident fund. Colony Sarhad Textile Mills Ltd. v. Collector, Central Excise and Land Customs P L D 1969 Lah. 228 ref. JUDGMENT AJMAL MIAN, J. The present Income tax Reference pertains to the assessment year 1967 68 and raise the following question of law: "Having regard to the facts and circumstances of the case whether the Income tax Tribunal was justified in holding that the employer's contribution to the recognized provident fund is covered by the term 'perquisites or other benefits' for the purpose of section 10(4)(d) of the Income tax Act?" 2. The brief facts leading to the filing of the above reference are that the Income tax Officer while making assessment for the above assessment year included the applicant /assessee's contribution to the recognized Provident fund maintained by it for the purpose of section 10(4)(d) of the Income tax Act. The applicant /assessee being aggrieved by the order of the Income tax Officer, dated 21 6 1972 filed Income tax Appeal…

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