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PETITIONER: ALLAHABAD BANK LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX,WEST BENGAL.
DATE OF JUDGMENT: 08/10/1953
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. SASTRI, M. PATANJALI (CJ) DAS, SUDHI RANJAN BOSE, VIVIAN HASAN, GHULAM
CITATION: 1953 AIR 476 1954 SCR 195
ACT: Income-tax Act (XI of 1922). s. 10 (2) (xv)-Contribution to trust for payment of pension to employees-Whether business expenditure-Payment of pension and amount thereof left to discretion of employer-No obligation on trustees to pay pension-Validity of trust. (1) [1950]18 I.T.R, 712; A.I.R 1950 Bom, 391. 196
HEADNOTE: A banking company executed a deed whereby it purported to create a trust for the payment of pensions to the retiring members of its staff. A certain sum of money was made over to three persons who were called trustees and the deed provided that the company may make further contributions to the fund. Under the terms of the deed, however, the company was not bound to pay any pension to any of the members of the staff, the payment itself and the amount payable being entirely at the discretion of the company, and the company had also the power to withdraw or modify any pension and to alter the rules relating to the granting of the pension at its will. In the accounting year the company paid a further contribution of Rs. 2 lacs to the fun...