2011 (4) TMI 1486

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..... rected against the order dated 30. 11. 2009 of CIT(A) for the A. Y. 2006-07. The only dispute raised is regarding disallowance of the amount paid to Employees Recreation Club under the provisions of section 40A(9) of the Income-tax Act. The assessee which is a government company had made a contribution of ₹ 10 lacs during the year to the employees recreation club. The assessee explaine .....

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..... assessee submitted that the case of the assessee was covered by the judgment of Hon ble High Court of Mumbai in case of CIT Vs Bharat Petroleum Corporation Ltd. (252 ITR 43) in which payment to club formed by the assessee for welfare of the employees has been found allowable. The Learned DR placed reliance on the order of AO. 3. We have perused the records and considered the matter careful .....

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..... es incurred by the club did not constitute contribution under section 40A(9) and therefore could not be disallowed under the said section. In this case the factual position is not clear as to whether the payment made by the assessee was towards reimbursement of expenses or it was a general contribution. We therefore set aside the order and restore the matter to the file of AO for passing a fresh .....

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