ALLAHABAD BANK LTD. vs COMMISSIONER OF INCOME-TAX,WEST BENGAL.

The Supreme Court ruled that under Section 10(2)(xv) of the Income-tax Act (XI of 1922), a banking company's contribution to a pension trust was not deductible as business expenditure. The Court found that the trust did not impose any obligation on the bank to pay pensions, as the payment and amount were entirely at the company's discretion. Consequently, no valid trust was created, and the contribution could not be considered as spent for business purposes, leading to the dismissal of the appeal.