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TMI Blog2017 (5) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... ing cash loss amounting to Rs. 18,28,459/-." 3. As regards Ground No. 1, the brief facts of the case are that during the course of assessment proceedings, the A.O observed that the assessee has claimed an expenditure of Rs. 15,36,414/- as contribution towards Employee's Provident Fund. The assessee was specifically asked by the A.O to provide copy of approval by the CCIT/CIT vide question No. 14 to letter dated 10.10.2013 whether the provident fund is recognized by the ld. CIT. 4. The A.O was not satisfied with the explanation of the assessee and he disallowed the contribution made to the recognized Provident Fund amounting to Rs. 15,36,414/-. 5. The ld. counsel for the assessee relied upon the submissions made before the ld. CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on the following case laws:- b) (2009) 27 SOT 31 (DELHI) In the ITAT Delhi Bench 'G' Deputy Commissioner of Income Tax", Central Circle-6, New Delhi v. Sahara India Employees Contributory Provident Fund. b) ITA No.3107/Del/2010 In the Income Tax Appellate Tribunal Delhi Bench : H : New Delhi ACIT, Haldwani, Uttarakhand Vs Udham Singh Nagar Distt. Co- operative bank 8. From the definition of the 'Recognized Provident Fund' in Section 2(38) of the Act, it is evident that there are two independent limbs of the definition, i.e. firstly, the approval/recognition should be by the Principal CIT or Chief Commissioner or the Principal Commissioner or Commissioner in accordance with the I.T. Act and Rules. The second limb is that the Provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund established under a scheme framed under the Employees' Provident Fund Act, 1952. It is pertinent to note here that the condition of recognition of the fund by the Chief Commissioner or Commissioner as stipulated in the first limb is consciously absent in the second limb which clearly depicts that such recognition is not a condition precedent for a provident fund established under a scheme framed under the Employees' Provident Fund Act. 1952 to be a "recognized provident fund" within the meaning of section 2(38), We, therefore, find no merit in the contention raised by the learned DR that such recognition by the Chief CIT or CIT is required even in case of a provident fund established under a scheme framed under the Employees' Provident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Bank Ltd in ITA No. 3107/DEL/2010 vide order dated 08.04.2013. The relevant part is reproduced hereinbelow: "7. Section 2 (38) of the Act reads as follows:- "(38) "recognized provident fund" means a provident fund which has been and continues to be recognized by the Chief Commissioner or Commissioner in accordance with the rules contained in Part A of the Fourth Schedule, and includes a provident fund established under a scheme framed under the Employees' Provident Fund Act, 1952 (19 of 1952)" 8. Thus, the Section is very clear in that it defines a "recognized provident fund" to include a Provident Fund established under a Scheme framed under the Employees' Provident Fund Act, 1952. Now, obviously, the Assessing Officer e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. The assessee company was asked to explain the same. After considering the reply filed by the assessee, the A.O observed that the company has discussed at length the objects of the company and the activities undertaken by it. But nowhere it explains as to how this cash loss was suffered by it. It was also not explained as to how this loss took place which is an allowable one. Therefore, the A.O held that the explanation given by the assessee is untenable and cannot be accepted. 12. When the aggrieved assessee went in appeal before the ld. CIT(A), he held that he had no reason to see that the assessee had actually suffered loss on this account. In view of this the claim was disallowed and addition of Rs. 18,28,459/- was confirmed. 13. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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