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TMI Blog2015 (10) TMI 2308X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional Commissioner or Chief Commissioner? ii) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the income would crystallize on approval of assessee's claim for reimbursement by competent authority while dealing with the issue of reimbursement of the amount relating to the issue of free passes for traveling of freedom fighters, etc., by the assessee?" 2. The facts, in a nutshell, are as hereunder :- While completing the assessment under Section 143 (3), it was found that the assessment is erroneous and prejudicial to the Revenue and, therefore, the Commissioner of Income Tax initiated revision proceedings under Section 263 of the Income Tax Act. The CIT found that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, the Tribunal allowed the appeal in part in favour of the assessee. Aggrieved by the said order, the appellant/Revenue is before this Court by filing the present appeal. 4. Learned standing counsel for the Revenue submitted that the assessee has not made any application for recognition of the Pension Fund Trust to the jurisdictional Commissioner, viz., Commissioner/Chief Commissioner of Income Tax, Salem, in terms of Part A of Schedule IV of the Act r/w Section 2 (38), which clearly defines recognised provident fund as one recognised by the jurisdictional Commissioner. It is further submitted that the Tribunal committed in error in remitting the matter back on the issue relating to reimbursement of the amount towards free passes, holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Government of Tamil Nadu or Welfare Scheme formulated by its own and is thereafter claiming reimbursement from the Social Welfare Department. The moot point which has to be looked into for including the income in tax net is, 'When does the income crystalises'? In case the assessee is issuing free passes to physically handicapped, freedom fighters, etc., under the scheme of Government, the assessee is assured to get the reimbursement of the amount on the issuance of passes itself. In case the claim of the assessee is subject to scrutiny by Social Welfare Department, the income crystalises after the claim of the assessee is approved by the competent authority. The Assessing Officer is directed to look into this issue and thereafter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head "Salaries" or to the contributions or to the number of members of the fund; * * * * * * * * *" 8. It is not in dispute that the Pension Fund Scheme has been jointly floated by the State Transport Corporations, as has been recorded by the Tribunal. The Tribunal has recorded a finding that State Transport Corporations operating in different districts in the State are signatories to the Trust Deed for setting up the Pension Fund Scheme. It is also not in dispute that the said fund has been recognized by the CIT-VII, Chennai. In the above backdrop, a cursory reading of Section 36 (1) (iv) of the Act would reveal that nowhere in the said provision it is stated that the pension fund should be recognised by the jurisdictional C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the said fund has been recognized by the CIT-VII, Chennai. A bare reading of the above provision clearly and unambiguously states that recognised provident fund means a provident fund which has been and continues to be recognised by the Chief Commissioner or Commissioner and nowhere it states that it should be recognised by the jurisdictional Commissioner. Therefore, it is not open to the Department to take a plea that the provident fund trust should be recognised by the Commissioner/Chief Commissioner of Income Tax, Salem, which is not the purport of the provision. Accordingly, this contention of the Revenue is also negatived. 10. In the above circumstances, no question of law, much less substantial questions of law arise for considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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