- (1.) This is an appeal from the judgment and order of the High Court of Judicature at Calcutta on reference made by the Income-tax Appellate Tribunal under S. 66 (1), Indian Income-tax Act, 11 at 1922.
(2.) The appellant is a banking Company carrying on business at among other places, Calcutta and Allahabad. On 15-3-1946 the appellant executed a deed by which it purported to create a trust for the payment of pensions to the members of its staff. The deed declared that a pension fund had been constituted and established. It then recited that a sum at Rs. 2,00,000 had already been made over to three persons who were referred to as the "present trustees" and proceeded to state that the fund would consist in the first instance at the said sum at Rs. 2,00,000 and that there would be added to it such further contributions that the Bank might make from time to time, though it would not be bound to make such contributions. In the course at the accounting year 1946-47, the bank made a further payment of Rs. 2,00,000 to this fund.
(3.) In its assessment for the assessment year 1947-48 the appellant claimed deduction of that sum of Rs. 2,00,000 under S. 10 (2) (xv) of the Act on the ground that it was an item of expenditure laid out or expended wholly and exclusively for the purposes at its business. The Income-tax Officer, the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal rejected this claim at the appellant and the Income-tax Appellate Tribunal at the instance of the appellant stated a case and referred for the consideration at the High Court the following question: "Whether in the facts and circumstances of this case, the Income-tax Appellate Tribunal was right in disallowing Rs. 2,00,000 as a deduction under S. 10 (2) (xv), Indian Income-tax Act." The High Court answered the question in the affirmative and hence this appeal.;