- The Assessee had made contribution to the PNB Employees Pension Fund Trust, which was claimed as legitimate business expenditure. The Assessing Officer opined that no deduction of such payment was allowable to the Assessee bank, even though the same was actually paid and the provisions under section 36(1)(iv) had to be looked into.
- Reliance was placed on the decision of Delhi Tribunal in case of DCIT vs Ranbaxy laboratories Ltd, wherein it was concluded that “the allowability of expenses towards provision for Pension Fund were held to be allowable expenses and section 43B has no application.”
- Reliance was also placed on the judgment rendered in the Assessee’s own case by the Delhi Tribunal and accordingly, it was inferred that the expenses on account of provision towards provision fund were allowable and section 43B had no application in this case.
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