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TMI Blog2013 (5) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer under section 43B of the Income Tax Act, 1961, while clause (b) of section 43B clearly states that any sum payable by way of contribution to provident fund is not allowable. ii) The order of the Ld. Commissioner of Income Tax (A) be set aside and that of Assessing Officer be restored. 3. The facts of the case are that the assessee is a cooperative society engaged in supply of sugar cane of it's members to sugar mills and trading of fertilizer with members etc. Return declaring NIL income was filed on 31.10.2007. During the course of assessment proceedings, it was gathered by the Assessing Officer that amount payable under the head provident fund was at Rs. 68,09,589/-. The assessee was thus required to explain as to why p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing case laws in support of its contention. i) Orissa State Financial Corporation vs. DCIT (2006) 99 TTJ (Ctk) 316. ii) A.C. vs. Ganesha Kant Tea Co. (P) Ltd. 250 ITR 107 (ITAT Calcutta). iii) CBDT Circular No. 387 dated 6.7.1984. 5. Considering the above, Ld. Commissioner of Income Tax (A) referred the provisions of section 40(A)(9) as under:- "No deduction shall be allowed in respect of any sum paid by the assessee as an employers towards the setting up or formation of, or as contribution to, any fund, trust, company, association of persons, body of individuals, society registered under the Societies Registration Act, 1980 (21 of 1860), or other institution for any purpose, except where such sum is so paid, for the purposes and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Federation and Employees PF Trust Funds Rules, 1979 through a Board of Trustees. Thus, we agree with the Ld. Commissioner of Income Tax (A) that it is a special case of its own as the assessee has a separate regulation of their own for administration of PF concerned and thus provisions of section 43B of Act are not applicable. In this regard, we also draw support from the order of this Tribunal in I.T.A. No. 5553/Del/2010 (A.Y. 2007-08) in the case of Addl. C.I.T., vs. M/s Ramraj Cooperative Cane Development Union Ltd. , the Tribunal vide its order dated 6.1.2002 has noted that in this case the PF to permanent seasonal staff was governed by the State Government Rules. The trust created for the purpose is duly registered under the I.T. Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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