2008 (4) TMI 659 - HC - Income Tax

Summary

Issues involved:
Appeals by revenue u/s 260-A of Income-Tax Act against common order of ITAT for assessment years 2001-2002 and 2000-2001. Dispute over allowing deduction of PF, ESI u/s 43B proviso.

Judgment Details:

Issue 1: Deduction of PF, ESI u/s 43B proviso
- Revenue appealed against ITAT order allowing deduction of PF, ESI post accounting period but pre-return filing.
- Proviso inserted by Finance Act, 1987 effective from 1.4.1988.
- Court referred to CIT v. Sabri Enterprises [2008] 298 ITR 141 (Kar.) where similar issue was decided in favor of assessee.
- Court upheld ITAT decision, directing revenue to accept ESI, PF payments and allow deductions as claimed by assessee in return.
- Given precedent, Court dismissed revenue's appeals without further discussion.

This judgment clarifies the application of the proviso to section 43B of the Income-Tax Act, emphasizing the importance of adhering to legal provisions and past judicial decisions in determining deductions for PF and ESI payments.