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2015 (8) TMI 1451 - HC - Income TaxAdditions u/s 43B - Employee s Contribution to Provident Fund - deposit of the contribution beyond the due date of filing of return - Held that - the issues stand covered by the judgment of the jurisdictional Court in C.I.T. vs. Vijay Shree 2011 (4) TMI 63 - ITAT KOLKATA and 2011 (9) TMI 30 - CALCUTTA HIGH COURT - Decided in favor of assessee.
Issues: Interpretation of section 43(B)(b) of Income Tax Act, 1961 regarding Employee's Contribution to Provident Fund.
Analysis: The appeal in this case was based on two substantial questions of law. The first issue was whether the Income Tax Appellate Tribunal erred in misinterpreting the application of section 43(B)(b) of the Income Tax Act, 1961 concerning the Employee's Contribution to Provident Fund. The appellant argued that the Tribunal had misunderstood the section as it deals with the Employer's contribution only. The second issue raised was whether the Employee's contribution to provident fund is covered by section 43(B)(b) of the Income Tax Act, 1961. The respondent, represented by Mr. Khaitan, relied on the judgment in C.I.T. Circle-I, Kolkata vs. Vijay Shree Ltd., where it was held that the amount paid for employees' contribution beyond the due date was deductible under the amended provisions of section 43B of the Income Tax Act, 1961. The Court had followed the decision in C.I.T. vs. Alom Extrusions Ltd., stating that the amendment to the second proviso to section 43B introduced by the Finance Act, 2003, was curative and needed to be applied retrospectively from 1st April, 1988. Mr. Khaitan pointed out that except for a different view in C.I.T. vs. Gujarat State Road Transport Corporation, all other High Courts had a similar stance to the Calcutta High Court's judgment. The Court, after considering the arguments and precedents, found that the issues raised were covered by the judgment in C.I.T. vs. Vijay Shree Ltd., where it was held that the Employee's contribution to provident fund is deductible under section 43B(b) of the Income Tax Act, 1961. Therefore, the first question was answered in the negative, favoring the respondent, and the second question was answered in the affirmative, against the appellant. Consequently, the appeal was dismissed.
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