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Showing contexts for: recognized provident in Indian Sugar Exim Corporatio. Ltd, vs Assessee on 30 August, 2010Matching Fragments
28. We have hard both the parties and gone through the material available on record. ITAT in order dated 19.03.2010 has deleted the similar addition made by the Assessing Officer by observing as under:
"7. We have heard both the parties and considered the material available on record. Section 36(1)(iv) provides as under:
"(iv) any sum paid by the assessee as an employer by way of contribution towards a recognized provident fund or an approved superannuation fund, subject to such limits as may be prescribed for the purpose of recognizing the provident fund of approving the superannuation fund, as the case may be; and subject to such conditions as the Board may think fit to specify in cases where the contributions are not in the nature of annual contributions of fixed on some definite basis by reference to the income chargeable under the head "Salaries" or to the contributions or to the number of members of the fund".
Reading the aforesaid section it is clear that to claim deduction by way of contribution to a recognized provident fund, it has to be demonstrated that the contribution is towards a recognized provident fund. The phrase "Recognized Provident Fund" is defined in Section 2(38) of the Act. As per the definition it means a provident fund, which has been and continues to be recognized by the Chief Commissioner or Commissioner in accordance with rules contained in Part A of the Fourth Schedule, and includes a provident fund established under a scheme framed under the I.T.A.No. 4787/Del/05,262/Del/08 I.T.A.No. 407/Del/06 & 79/Del/08 Employees' Provident Funds Act, 1952. Since as per the letter issued by CIT, Delhi-III dated 28.5.1976, the provident fund is considered as fund to which Provident Fund Act, 1925/1952 applies, it amounts to a "Recognized Provident Fund" within the meaning of Section 2(38) of the Act and hence in terms of section 36(1)(iv) the contribution to "recognized provident fund" is allowable as such. Since there is no dispute that the amount was paid within the due dates prescribed, the disallowance is to be deleted. We, therefore, delete the disallowance of ` 15,22,234/."