The Commissioner Of Income Tax v. M/S. Mahindra & Mahindra Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 134 of 1995 The Commissioner of Income Tax ... Applicant. vs. M/s. Mahindra & Mahindra Ltd. ..... Respondent Mr. Parag Vyas i/b. H. D. Rathod for Applicant. Mr. B. V. Jhaveri 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. 2750/Bom/1987, forAssessment Year 1979-80, 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 sum of Rs. 1,72,414 due by the assessee toM/s. Jeep Corporation and written off by the lender wasthe taxable income of the assessee? (2) Whether on the facts and in the circumstances of thecase, the Tribunal was right in law in holding that theentire initial contribution to the superannuation fundamounting to Rs.6,96,725/- was allowable deduction asagainst 1/5[th] of the contribution allowed in the year? 2 P 1. Both counsel appearing for the rival parties agree that the questionno. 1, referred to above, have been covered by the judgment of thiscourt in the case of Mahindra & Mahindra Ltd. Vs. Commissionerof Income Tax in ITR No. 579 of 1987 decided on 29[th] January2003. In that view of the mater the question is answered in thenegative, i.e., in favour of the assessee, against the revenue. no. 1, referred to above, have been covered by the judgment of thiscourt in the case of Mahindra & Mahindra Ltd. Vs. Commissionerof Income Tax in ITR No. 579 of 1987 decided on 29[th] January2003. In that view of the mater the question is answered in thenegative, i.e., in favour of the assessee, against the revenue. 2. Needless to mention that second question is also covered by thejudgment of the Apex Court in the case of Commissioner ofIncome Tax vs. Sirpur Paper Mills , reported in [1999] 237 ITR 41(SC) where the Apex Court held that deductions of contribution tosuperannuation fund is allowable as revenue expenditure.Reference is accordingly disposed of with no order as to costs.judgment of the Apex Court in the case of Commissioner ofIncome Tax vs. Sirpur Paper Mills , reported in [1999] 237 ITR 41(SC) where the Apex Court held that deductions of contribution tosuperannuation fund is allowable as revenue expenditure.Reference is accordingly disposed of with no order as to costs. (V. C. DAGA J. ) -x- (A. S. AGUIAR J.)