2009 (1) TMI 107 - HC - Income Tax

Whether the appellate authorities were correct in holding that the belated payment of the employer s contribution to provident fund beyond the stipulated period, cannot be treated as the income of the assessee under section 36(1) (va) read with section 2(24)(x) as held by the Assessing Officer in view of the amendment to section 43B question is answered in favour of assessee and against revenue

Summary

The Karnataka High Court dismissed the Revenue's appeal under section 260A of the Income-tax Act, 1961, against the order of the Income-tax Appellate Tribunal. The court held that belated payment of employer's contribution to provident fund cannot be treated as the income of the assessee under section 36(1)(va) and section 2(24)(x) of the Act, based on previous Division Bench judgments. The appeal was dismissed as the question had already been answered in favor of the assessee.