Assessee-company paid a certain sum to two concerns for purpose of festival celebration and general welfare of its employees. The-Assessing Officer disallowed same by invoking section 40A(9) of the Act. The Tribunal held that since amount was paid for welfare of employees of assessee and not as contribution to any fund, trust, etc., provisions of section 40A(9) were not applicable. Disallowance was deleted. Where tax effect in appeal of revenue was below Rs. 50 lakhs, appeal was not maintainable because of low tax effect as per latest instructions of CBDT.(AY. 2011-12)
Karnataka State Industrial Infrastructure Development Corporation Ltd. v. DCIT (2020) 83 ITR 386 / 185 ITD 441/( 2021 ) 211 TTJ 362 (Bang.)(Trib.)
S. 40A(9) : Expenses or payments not deductible-Amount was paid for welfare of employees of assessee and not as contribution to any fund, trust, etc.-Provision is not applicable-Less than monetary limit-Appeal is not maintainable. [S. 268A]