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TMI Blog2013 (7) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... date for filing returns of income under Sec. 139(1) - Relying on the judgement of CIT v. Sabari Enterprises (2007 (7) TMI 169 - KARNATAKA HIGH COURT) – held that:- It is further observed that in order to bring about uniformity in allowing deductions to contributions to welfare funds, the amendment was necessitated, while the reason not to extend such deduction appeared to be that the employer should not sit on the collected contributions and deprive the workman of the rightful benefits under the social welfare legislations by delaying payment, of contribution - regard being had to the words "due date" there can be no more doubt that the Assessing Officer as well as the revision authority fell in error in disallowing the deduction being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.2,14,876/- was remitted prior to the last date for filing of the income tax return under Sec. 139(1) of the Act, extended upto 30/11/2006, by placing reliance upon the decision of the Division Bench of this Court in CIT v. Sabari Enterprises [2008] 298 ITR 141 as affirmed by the Apex Court in CIT v. ALOM Extrusions Ltd. [2009] 319 ITR 306. Respondent having considered the revision petition, observed that the Revenue had preferred Civil Appeal Nos. 7763-7764/2009 and that the question that arose for consideration in Sabari Enterprises' case (supra) was, allowability of deduction under Sec.43B of the Act in respect of the employees' contribution under the EPF Act and ESI Act, remitted beyond the stipulated period as contemplated under the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upheld the finding of the Tribunal that the contributions remitted by the assessee to PF and ESI are allowable deductions even though made beyond the stipulated period as contemplated under the mandatory provisions of Sec.36(1)(va) r/w Sec.2(24)(x) and Sec.43B of the Act, since the same was paid by the assessee on or before the due date of furnishing the return of income under Sec. 139(1) of the Act. According to the learned counsel, this judgment when carried in Civil Appeal Nos. 7763-7764/09 by the Revenue, was affirmed by order dt. 25/11/2009 dismissing the Civil Appeals, in ALOM Extrusions Ltd's case (supra). Learned counsel hastens to add that the Revenue having suffered a judgment at the hands of the Division Bench of this Court, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he employees' contribution remitted by the employer, petitioner-assessee. 6. In Sabari Enterprises (supra), the Division Bench after extracting Sec.2(24)(x),. Sec.36(1)(va) and Sec.43B(b), regard being had to the expression "due date", meaning the date by which the assessee is required, as an employer, to credit the contributions to the employees' account in the relevant fund under any Act, Rule or Order or notification issued thereunder or under any standing order, award or contract of service or otherwise, as well as non-obstante clause in Sec.43B, held that the provisions read along with the first proviso to the section as was inserted by Finance Act, 1987, which came into effect from 1/4/1988, deduction towards the Employees' contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leading to the introduction of the first proviso w.e.f. 1/4/1988 and the insertion of the secondproviso vide Finance Act 1988, making reference to the term 'due date' in the Explanation to Sec.36(1)(va) of the Act, as well as the amended second proviso by Finance Act 1989,' w.e.f. 1/4/1989. Their Lordships observed that the hardship caused to employers was addressed and by the Finance Act 2003, w.e.f. 1/4/2004, two changes were made, namely deletion of second proviso and further amendment to the first proviso, equated in terms of the benefit of deduction of tax, duty, cess and fee on the one hand with contributions to the employees provident fund, superannuation fund and other welfare funds on the other. It is further observed that in orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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