2014 (1) TMI 1085 - HC - Income Tax

Payment of GPF, CPF and ESI beyond due date - Held that - The entire amount was deposited by the respondent-assessee at least on or before the due date of filing of the returns under Section 139 of the I.T. Act - If the amount has been deposited on or before the due date of filing the return under Section 139 and admittedly it was deposited on or before the due date then the amount cannot be disallowed under Section 43B of the I.T. Act or under Section 36(1)(va) of the Act - Decided against Revenue.

Summary

Issues:
Income Tax Appeals under Section 260A of the Income Tax Act challenging orders of the Income Tax Appellate Tribunal regarding the allowability of GPF, CPF, and ESI payments under Section 36(1)(va) and Section 43B of the IT Act for different assessment years.

Analysis:

1. Allowability of GPF, CPF, and ESI Payments:
The respondent-assessee claimed the payments of GPF, CPF, and ESI under Section 36(1)(va) read with Section 43B of the IT Act. The revenue contended that although the payments were made by the assessee, they were not made within the due date specified by the relevant Acts. The respondent argued that even though the payments were not made by the due date of the respective Acts, they were deposited before the due date of filing Income Tax returns under Section 139 of the IT Act. The revenue insisted that the payments had to be made by the due date of the specific Acts and, therefore, were not allowable under Section 36(1)(va) or Section 43B of the IT Act.

2. Judicial Interpretation and Precedents:
The court considered the arguments presented by both parties and reviewed the impugned orders. It was noted that the entire amount was deposited by the respondent-assessee before the due date of filing Income Tax returns under Section 139 of the IT Act. The court referred to previous judgments, including Commissioner of Income Tax vs. M/s State Bank of Bikaner & Jaipur and Commissioner of Income Tax vs. Jaipur Vidyut Viaran Nigam Ltd., where it was held that if the amount was deposited before the due date of filing returns, it cannot be disallowed under Section 43B or Section 36(1)(va) of the IT Act. Given the consistency of the findings and the established precedents, the court concluded that no substantial question of law arose from the orders of the Income Tax Appellate Tribunal.

3. Dismissal of Appeals:
Based on the above analysis, the court found no merit in the appeals and dismissed them in limine. The court emphasized that the issue had already been settled by previous judgments and, therefore, did not require further consideration or intervention by the court.

In conclusion, the High Court of Rajasthan upheld the allowability of GPF, CPF, and ESI payments made by the respondent-assessee under Section 36(1)(va) and Section 43B of the IT Act, dismissing the appeals filed against the orders of the Income Tax Appellate Tribunal.