1998 PLP 752 (PTD)
T. STANES & CO. LTD. Versus COMMISSIONER OF INCOME-TAX
| Citation | 1998 PLP 752 (PTD) |
| Forum / Court | 221 I T R 209 |
| Bench Members | Thanikkachalam and Govardhan, JJ |
| Parties | T. STANES & CO. LTD. Versus COMMISSIONER OF INCOME-TAX |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1998 PLP 752 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1998 PLP 752 (PTD)?
The case was heard and decided by the 221 I T R 209 bench comprising: Thanikkachalam and Govardhan, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1998 PLP 752 (PTD) (T. STANES & CO. LTD. Versus COMMISSIONER OF INCOME-TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Remuneration to employees
Pension paid to retired employees
Not deductible
Indian Income Tax Act, 1961, S.37. Held, that the Tribunal was correct in holding that the assessee company was not entitled to deduction of the amount representing payment of pension to the retired employees of the company in the computation of its income for the assessment years 1973-74, 1974-75 and 1975-76. T. Stanes & Co. Ltd. v. CIT (1991) 188 ITR 237 (SC) and CIT v. T. Stanes & Co. Ltd. (1976) 105 ITR 251 (Mad.) fol. P.P.S. Janarthana Raja for the Assessee. C.V. Rajan for the Commissioner. .
Judgment & Decree
Held, that the Tribunal was correct in holding that the assessee company was not entitled to deduction of the amount representing payment of pension to the retired employees of the company in the computation of its income for the assessment years 1973-74, 1974-75 and 1975-76. T. Stanes & Co. Ltd. v. CIT (1991) 188 ITR 237 (SC) and CIT v. T. Stanes & Co. Ltd. (1976) 105 ITR 251 (Mad.) fol. P.P.S. Janarthana Raja for the Assessee. C.V. Rajan for the Commissioner. . At the instance of the assessee, the Tribunal referred the following three questions for the opinion of this Court for three assessment yearn, viz, 1973-74, 1974-75 and 1975-76 under section 256(1) of the Income Tax Act, 1961: "(1) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs.18,677 or any part thereof representing pension payment to retired employees of the company in the computation of income for the assessment year 1973-74? (2) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs.18,216 or any part thereof representing pension payment to retired employees of the company in the computation of income for the assessment year 1974-75? (3) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs.17,399 or any part thereof representing pension payment to retired employees of the company in the computation of income for the assessment year 1975-76?" The issue involved in all these three questions is common. The point for consideration is whether the assessee is entitled to deduction of the amount representing pension payment to the retired employees of the company in the computation of income. In the ease of the same assessee, this Court in the decision reported in CIT v. T. Stanes & Co. Ltd. (1976) 105 ITR 251 held that such deduction is not possible. This decision of this Court was confirmed by the Supreme Court in the decision reported in T. Stanes & Co. Ltd. v. CIT (1991) 188 ITR
237. In view of the abovesaid decision rendered in the case of the same assessee, we hold that the Tribunal was correct in holding that the assessee is not entitled to a deduction towards the amount representing payment of pension to the retired employees of the company in the computation of income for the assessment years in question. Accordingly, we answer the questions referred to us in the affirmative and against the assessee. No costs. M.B.A./.1241/FC Reference answered.