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TMI Blog2019 (7) TMI 1681X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the assessee is entitled to get the benefit for the contributions made to the said fund. Allowing the damages for remittance to Pension Fund Trust - HELD THAT:- As decided in own case [ 2018 (11) TMI 1798 - ITAT CHENNAI] issue is decided in favour of the assessee and against the Revenue. Disallowance of Chairman s Office Expenses - HELD THAT:- As submitted by ld. D.R that during the course of Appellate proceedings, the assessee has submitted their evidences before the ld.CIT(A) and the ld.CIT(A) has decided the matter without calling for the remand Report from the ld.Assessing Officer. The ld.AR has not denied the said factual position. We accordingly set aside the matter to the file of ld.CIT(A) to seek the Remand Report from the ld.Assessing Officer and decide the matter afresh as per law. This Ground relating to the expenses incurred for Chairman s Office Expenses is allowed for statistical purposes. Disallowance u/s.14A read with Rule 8D - HELD THAT:- By no stretch of imagination can Section 14A or Rule 8D be interpreted so as to mean that the entire tax exempt income is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rannuation fund. The section does not lay down any specific condition that the fund should be approved by the jurisdictional Commissioner or Chief Commissioner only. In the present case, the assessee is contributing in the Pension Fund Scheme jointly floated by twelve State Transport Corporations operating in different districts of the state of Tamil Nadu. All the State Transport Corporations are signatories to the Trust Deed for setting up of joint State Transport Employees Pension Fund Scheme. It is not in dispute that the said fund has been recognized by the CIT-VII, Chennai. Once the assessee is contributing towards recognized fund, the assessee is entitled to get the benefit for the contributions made to the said fund. 7. The case of the assessee is supported by the decision of the coordinate bench of the Tribunal in the case of Stanmore (Anamallay) Estates Ltd., Vs. ITO (supra). In the said case, the assessee-company along with other four sister companies created a joint gratuity fund for the exclusive benefit of its employees under on irrevocable trust. The CIT in proceedings u/s.263 raised similar objection that the assessee is not contributing towards fund approved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amages for remittance if Pension fund trust for ₹ 2,35,91,384/ is allowed. furnishing a copy of interest rate declared by Pension Fund accumulation since 1952 to 2014, the AR submitted that since the AO has already decided the nature of this payment ie., the damages paid by it in assessment year 2011-12, is compensatory in nature, this appeal may be allowed. 7. We heard the rival submissions and find merit in the submissions made by the ld. AR, supra, and hence, do not find any merit in the submission of the Revenue. The appeal grounds of the Revenue are dismissed. 5. We have heard the rival contentions and perused the material available on record. Respectfully following the decision of the Co-ordinate Bench of this Tribunal, the issue is decided in favour of the assessee and against the Revenue, and the grounds so taken are dismissed. 6. In respect of Ground No.6 of the Revenue s appeal, the Revenue has challenged the action of the ld.CIT(A) in allowing the claim of assessee towards Chairman s Office Expenses amounting to ₹ 7,81,274/-. In this regard, our reference was drawn to the findings of the ld.CIT(A) at para-5 of ld.CIT(A) s order which read as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 018 is partly allowed for statistical purposes. 7. Next we take the Revenue s appeal in ITA No.814/Chny/2018. 8. We find that in Ground Nos.1 2, the Revenue has raised similar grounds relating to damages for remittance to Pension Fund Trust amounting to ₹ 1,38,37,508/-. Both the parties fairly submitted that the facts and circumstances of the case are exactly identical as in ITA No.813/Chny/2018 for assessment year 2008-09. Therefore, our findings and directions contained in ITA No.813/Chny/2018 in para Nos.4 5 of this order shall apply to Ground Nos.1 2 raised in Revenue s appeal in ITA No.814/Chny/2018 for assessment year 2012-13. Hence, the grounds so taken for remittance to Pension Fund Trust by the Revenue are dismissed. 9. In respect of Ground No.3 4 of the Revenue s appeal, the Revenue has challenged the action of the ld.CIT(A) in restricting the disallowance u/s.14A read with Rule 8D Income Tax Rules,1962 to the extent of exempt income amounting to ₹ 6,63,236/-. In this regard we refer to the findings of the ld.CIT(A), who following the decision of the Hon ble Madras High Court in TCA No.520 of 2016 in the case of M/s.Redington (India) Ltd., Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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