2011 (7) TMI 1315 - AT - Income Tax

Summary

Issues involved: The judgment involves disputes regarding deduction of educational expenses and disallowance of contributions towards Provident Fund, ESI, and Pension Fund.

Deduction of Educational Expenses (Assessment Year 2003-04): The assessee claimed deduction for educational expenses of directors' sons studying abroad, but the Assessing Officer disallowed it. The Commissioner of Income-tax (Appeals) upheld the disallowance citing relevant judgments. The assessee contended that the expenditure was allowable, but the Tribunal found no error in disallowing it under section 37(1) of the Income-tax Act, 1961.

Disallowed Contributions towards Provident Fund, ESI, and Pension Fund: The dispute involved disallowance of employees' and employer's contributions on the grounds of late payments. The assessee argued that the payments were made before the due date of filing the return under section 139(1) of the Act, relying on legal precedents. The Departmental Representative contended that employees' contributions were not allowable due to late payment. The Tribunal ruled in favor of the assessee, allowing both employer's and employees' contributions based on legal interpretations and judgments, reversing the Commissioner of Income-tax (Appeals) decision.

Conclusion: The Tribunal upheld the disallowance of educational expenses deduction for the assessment year 2003-04 but allowed the appeal regarding contributions towards Provident Fund, ESI, and Pension Fund. The Tribunal also allowed the appeal for the assessment year 2004-05 concerning the disallowance of employees' contributions towards PF and ESI. The judgments were pronounced on July 29, 2011.