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TMI Blog2010 (11) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of clauses (iv) and (v) of section 36(1) or under provision of any other Act or Rules. So much so, contribution to unrecognized Employees Welfare Fund by the employer is not allowable by virtue of the express provision contained in section 40A(9) of the Act. We find support for this position in the earlier judgment of this Court reported in Aspinwall and Co. Ltd. v. Dy. CIT [2006 (8) TMI 99 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.N. Ramachandran Nair, B.P. Ray, JJ. S. Arjun Raj, C.T. Suja and P. Daniel for the Appellant P.K.R. Menon and Jose Joseph for the Respondent JUDGMENT C.N. Ramachandran Nair, J.- The connected appeals are filed by the assessee challenging the orders of the Tribunal confirming the Income-tax assessments for assessment years 1996-97 and 1997-98. We have heard Sri. Arun Raj, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral other sections could be allowed. Section 40A(9) deals with creation of Trust Funds for making contribution to such funds by the assessee as an employer. Necessarily the funds referred to therein are funds for the benefit of the employees. What sub-clause (9) says is that in order to get exemption for such contributions, employees funds should be those falling under section 36(1)(iv) and (v) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling contained in sub-section (2) of section 35. The finding of the Tribunal is that assessee, besides paying some advance for research equipments, has not carried out any research and the asset itself was acquired in subsequent year. Even though expenditure, both revenue and capital incurred by the assessee for research and development qualifies for deduction, the advance paid for acquiring asset ..... X X X X Extracts X X X X X X X X Extracts X X X X
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