The Commissioner Of Income Tax v. M/S. Audco India Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 144 of 1995 The Commissioner of Income Tax ... Applicant. vs. M/s. Audco India Ltd. ..... Respondent Mr. Parag Vyas i/b. H. D. Rathod for Applicant. Mr. P. D. Damodar i/b. Kanga & Co., for Respondent CORAM: V. C. DAGAAND A. S. AGUIAR JJ. Date: 10[th] August, 2005. P. C. : 1. By this reference arising out of I.T.A. No. 5398/Bom/1986, forAssessment Year 1983-84, under section 256(1) of the Income-tax Actthe Tribunal has referred the following question of law for opinion at theinstance of the Revenue: (1) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that thecontribution of Rs.4,24,857 made by the assessee to the approved superannuation fund as for the pastservices of the employee admitted to the membership ofthe fund during the year under consideration should beallowed as a deduction? 1. Both counsel appearing for the rival parties agree that the above questions have been covered by decision of the Apex Court. The first question is covered by the judgment in the case ofCommissioner of Income Tax vs. Sirpur Paper Mills , reported in[1999] 237 ITR 41 (SC) where the Apex Court held that deductions ofcontribution to superannuation fund is allowable as revenueexpenditure. In this view of the matter both the questions referredto us is answered in the affirmative i.e. in favour of the assesseeand against the Revenue. Reference accordingly disposed of withno order as to costs. (V. C. DAGA J. ) -x- (A. S. AGUIAR J.)