9911796707
TMI Blog1994 (8) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, the following question was referred to us for our opinion for the assessment years 1969-70 to 1971-72 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in disallowing a sum of Rs. 60,000 representing pension paid to the widow of late Sri Anantharamakrishnan?" The assessee is a private limited company. The facts which are necessary for decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellate Assistant Commissioner, the assessee thereafter went in appeal before the Tribunal. The Tribunal confirmed the order passed by the Appellate Assistant Commissioner. The submission of learned counsel for the assessee is that the payment to the widow was not an ex gratia payment as normally understood, but was the beginning of a scheme under which the employees get such pension during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red learned counsel to produce the scheme before us and show the portion under which similar benefit is available to others dying during their employment. The scheme does not contain any such provision. Clause 11(c) of the scheme deals with a case where an employee is entitled to pensionary benefit while dying in harness. The pensionary benefit to an employee is limited to a maximum period of fift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the late director and to provide omnibus facilities to his widow during her lifetime. This scheme has nothing to do with the commercial consideration of the company and for that reason we would not find any difficulty in the Income-tax Officer disallowing the claim and the appellate authorities accepting the said decision as legal and valid. In the circumstances, we would answer the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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