T. Stanes and Co. Ltd. vs Commissioner of Income Tax

The Court

At the instance of the assessee, the Tribunal referred the following three questions for the opinion of this Court for three assessment years, viz.,

1973-74, 1974-75 and 1975-76 under s. 256(1) of the IT Act, 1961 :

(1) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs. 18,677 or any part thereof representing

pension payment to retired employees of the company in the computation of income for the asst. yr. 1973-74 ?

(2) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs. 18,216 or any part thereof representing pension

payment to retired employees of the company in the computation of income for the asst. yr. 1974-75 ?

(3) Whether the Tribunal was right in holding that the assessee is not entitled to a deduction of Rs. 17,399 or any part thereof representing pension

payment to retired employees of the company in the computation of income for the asst. yr. 1975-76 ?

The issue involved in all these three questions is common. The point for consideration is whether the assessee is entitled to deduction of the

amount representing pension payment to the retired employees of the company in the computation of income. In the case of the same assessee, this

Court in the decision reported in Commissioner of Income Tax Vs. T. Stanes and Co. Ltd., held that such deduction is not possible. This decision

of this Court was confirmed by the Supreme Court in the decision reported in T. Stanes and Co. Ltd. Vs. Commissioner of Income Tax, . In view

of the abovesaid decision rendered in the case of the same assessee, we hold that the Tribunal was correct in holding that the assessee is not

entitled to a deduction towards the amount representing payment of pension to the retired employees of the company in the computation of income

for the assessment years in question. Accordingly, we answer the questions referred to us in the affirmative and against the assessee. No costs.