Court : Income Tax Appellate Tribunal ITAT Pune
Decided on : Dec-06-1982
Reported in : (1983)5ITD102(Pune.)
..... of the trust deed make it clear that the beneficiaries would be the employees of the nature envisaged by section 77 of the indian companies act. there is no difficulty at all in determining who the employees of the company are. but, shri sathe, relying on the supreme court, decision in allahabad bank ltd.'s case (supra), submitted that it is not sufficient ..... been claimed as a deduction.18. the ito rejected the assessee's claim. he noticed that the trust is forced to invest their funds only in the shares and debentures of the assessee company and that only the dividend income could be used for.the purpose of the welfare of the employees. the amount utilized was trifling. he was of opinion that ..... , they cannot be questioned. further, pointing out to the clause which requires the trust to invest their funds in the shares and debentures of the company itself, he submitted that it would be only a further means of controlling the company. finally, he submitted on this aspect of the matter that if these facts are kept in mind, it will be realized that ..... proper reading of clause 2 would show that only such funds which, in the discretion of the trustees required investment, could be considered for investing in the shares and debentures of the company. he submitted further that it is open for the trustees to invest in other securities also according to their discretion. he further pointed out that there is no requirement .....Tag this Judgment!