2010 (11) TMI 1017 - AT - Income Tax

Summary

Issues involved: Disallowance of employees' contribution to provident fund u/s. 36(1)(va) for Assessment Year 2002-03.

Summary:

Issue 1: Disallowance of employees' contribution to provident fund

The appeal was filed against the order disallowing employees' contribution to PF. The Assessing Officer disallowed the amount, which was confirmed by the Ld. C.I.T.(A) due to payment made beyond the due date. The appellant contended that payments were made before the due date of filing the return for the relevant year. The Finance Act, 2003 amendment allowed deductions u/s. 43B if payments were made before the due date. The appellant cited relevant case laws supporting their claim. The Ld. D.R. argued that section 43B did not apply to employees' contribution. The counsel relied on a Delhi High Court judgment supporting the deduction of employees' contribution if paid before the due date.

Decision: The Tribunal noted the Delhi High Court's stance on employees' contribution and directed the Assessing Officer to verify the payments made before the due date and allow the deduction accordingly. The appeal was partly allowed based on this verification.