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TMI Blog2014 (8) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Funds Act as well as the Employees' State Insurance Act – Decided against Revenue. - D.B. ITA NO.48/2012 - - - Dated:- 13-5-2013 - MR. NARENDRA KUMAR JAIN AND MR. ARUN BHANSALI, JJ. Mr. K.K. Bissa, for the appellant BY THE COURT: The defect pointed out by the office is overruled. This appeal has been filed by the Revenue aggrieved by the order dated December 16, 2011, passed by the Income-tax Appellate Tribunal, Jodhpur Bench, Jodhpur ( the ITAT ) in ITA No. 351/JU./2010 for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions are allowable. It was further noticed that it was not in dispute that the provident fund contribution and the employees' State insurance was deposited by the appellant before the due date of filing the return and, consequently, the Commissioner of Income-tax (Appeals) deleted the disallowance made by the Assessing Officer and granted a relief of ₹ 14,61,385. The order dated March 15, 2010, passed by the Commissioner of Income-tax (Appeals) was questioned by the Revenue before the Incometax Appellate Tribunal and the Income-tax Appellate Tribunal by its order dated December 16, 2011, upheld the order passed by the Commissioner of Income-tax (Appeals) on the said issue, inter alia, holding that the employees' contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mandatory for the Department to grant deduction in computing the income under section 28 in the year in which tax, duty, cess, etc., is actually paid. However, Parliament took cognizance of the fact that the accounting year of a company did not always tally with the due dates under the Provident Fund Act, Municipal Corporation Act (octroi) and other tax laws. Therefore, by way of the first proviso, an incentive/relaxation was sought to be given in respect of tax, duty, cess or fee by explicitly stating that if such tax, duty, cess or fee is paid before the date of filing of the return under the Income-tax Act (due date), the assessee(s) then would be entitled to deduction. However, this relaxation/incentive was restricted only to tax, duty, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Funds Act as well as the Employees' State Insurance Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences. In so far as the Income-tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed, as per the principle laid down by the Supreme Court in Vinay Cement [2009] 313 ITR (St.) 1 (SC). In view of the settled legal position, the appeal preferred by the Revenue has no substance and the same is, therefore, dismissed. No costs. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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