Calcutta High Court
Principal Commissioner Of Income Tax vs M/S. Exide Industries Limited on 13 June, 2018
Author: Sanjib Banerjee
Bench: Sanjib Banerjee
OD 5
GA 76 of 2017
ITAT 402 of 2016
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION (INCOME TAX)
PRINCIPAL COMMISSIONER OF INCOME TAX-1, KOLKATA
Versus
M/S. EXIDE INDUSTRIES LIMITED
BEFORE:
The Hon'ble JUSTICE SANJIB BANERJEE
The Hon'ble JUSTICE ABHIJIT GANGOPADHYAY Date : 13th June, 2018.
Mr. Animesh Kanti Ghosal,Advocate appears.
Mr. P.Dudhoria,Advocate appears.
Mr. J.P.Khaitan,Sr. Advocate appears.
Ms. Nilanjana Banerjee,Advocate appears.
The Court :- Notwithstanding the irrelevant questions framed by the Revenue, there is a legal issue which requires some deliberation and consideration.
It appears that an initial contribution was made by the assessee towards the pension fund of its employees and, upon the decline of the rate of interest over the years, it was discovered that a further contribution had to be made to meet the pay-out to the pensioners. Upon an actuarial 2 valuation, a sum of Rs. 9 crore was paid during the relevant assessment year to augment the pension fund. The legal issue that arises is since the initial contribution is permitted to be deducted from the income and annual contribution to a pension fund may also be deducted from the income of the employer, would an ad hoc or lump sum interim contribution, in such circumstances, be also eligible for deduction. Such question has to be gone into.
In the tribunal's order, there is a reference to the Mumbai tribunal taking a view in a matter pertaining to Glaxo Smithcline Pharmaceuticals that such interim contribution would also be eligible for deduction. However, it does not appear that any opinion on such question has been rendered by any High Court.
The appeal is admitted on the question indicated above. The appellant will prepare paper- books within eight weeks from date and forward adequate copies thereof to the assessee. The appeal will appear for hearing in the monthly list November, 2018.
GA No. 76 of 2017 is disposed of without any order as to costs.
(SANJIB BANERJEE, J.) (ABHIJIT GANGOPADHYAY, J.) S.Chandra