DCIT v. PEC Ltd. [ITA No. 50 Del of 2014, dt. 13-5-2016] : 2016 TaxPub(DT) 2451 (Del-Trib)

Actuary valued post retirement medical benefits scheme--Allowability

Facts:

Assessee PSU under the ministry of commerce and industry had to provide for post retirement medical benefits in the books based on actuarial valuation. This was disallowed by the assessing officer while negated by the Commissioner (Appeals) holding assessees own case of earlier year. On further appeal:

Held in favour of the assessee that the actuarial provision for post retirement medical benefits was an allowable deduction.