9911796707
|
Home
Issues Involved: The judgment involves the deletion of addition made on account of employees' share of provident fund and the interpretation of due date u/s. 36(1)(Va) of the Income Tax Act, 1961.
Deletion of Addition for Provident Fund Contribution: The assessee-company was required u/s. 36(1)(va) to deduct and deposit employees' provident fund contributions within the prescribed period. The AO disallowed late deposits for the assessment years 2003-04 and 2004-05, adding them to the assessee's income u/s. 2(24)(x) of the Act. However, the CIT(A) allowed the claim, leading to the Revenue's appeals. The Tribunal noted that the issue was covered in favor of the assessee by the decision of the Hon'ble Delhi High Court in CIT Vs. P.M. Electronic Ltd. The High Court confirmed that payments made in accordance with the Act's provisions were allowable deductions. The Tribunal, following this precedent, dismissed the Revenue's appeals. Interpretation of Due Date u/s. 36(1)(Va): The Revenue contended that the due date mentioned in section 36(1)(Va) should be as defined u/s. 139(1) of the Income Tax Act, 1961, not as explained below sub-section (Va) of section 36. The Tribunal, relying on various High Court decisions and the Supreme Court's rulings, upheld the interpretation that payments made before the return filing date were eligible for deduction u/s. 43B. The Tribunal emphasized the significance of the Supreme Court's observations on the law pre-amendment to section 43B, dismissing the Revenue's contentions based on other High Court decisions. The Tribunal aligned with the Madras High Court's reasoning and concluded that no substantial question of law arose for consideration in the appeal, ultimately dismissing the Revenue's appeals.
|
