Dismissing the appeal of the revenue the Court held that, Even contributions to unapproved and unrecognized funds have to be allowed as a deduction if they are genuine in nature. Provision is not meant to hit genuine expenditure by an employer for the welfare and the benefit of the employees. (ITA No. 718 of 2017, dt. 18.06.2019)
PCIT v. State Bank of India ( 2019) 181 DTR 275 / ( 2020) 420 ITR 376/314 CTR 542 (Bom.)(HC), www.itatonline.org
S. 40A(9) : Expenses or payments not deductible-Contributions to unapproved and unrecognized funds–Held to be allowable if they are genuine in nature. [ S.36(1) (iv), 36(1)(iva) 36(1)(v) ]