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TMI Blog2015 (5) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... payable by the employer in respect of such employee - the payment of contribution by the employer to the fund under the scheme means both employer’s contribution and employee’s contribution - Whether he deducts the employee’s contribution from the salary or not, in law, he is liable to pay the said amount –thus, Section 2(24)(x) of the Act makes it clear that the employee’s contribution which the employer deducts from his salary before it is paid into the fund, is treated as the income of the employer, and the employer by contributing can get the deduction. The payment must be made within the due date i.e. the due date prescribed under Section 139(1) of the Act – Relying upon Commissioner of Income Tax Versus M/s. Alom Extrusions Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's contribution and failing to apply section 36(1)(va) and section 2(24)(x) of the Act under which the employees' contribution would become the income of the assessee at the end of the year if the same is not deposited within the stipulated time ? 3. This court had an occasion to consider the said question of law in the case of CIT v. Spectrum Consultants India Pvt. Ltd. decided on December 9, 2013 in W. A. No. 4077 of 2013 [2014] 2 ITR-OL 622 (Karn) where, after referring to sections 29, 30 and 31 of the Provident Fund Act, has held as under (page 626 of 2 ITR-OL) : A reading of the aforesaid provisions makes it clear that the contributions payable by the employer under the scheme shall be at the rate of 10 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , if those contributions are paid before the due date prescribed under section 139(1) of the Act the employer shall be entitled to the deductions as provided under section 36(1) of the Act. While extending such benefit, Parliament has not made any distinction between the employee's contribution and the employer's contribution. It is for the simple reason, under the provident fund scheme, an employer has to pay both the contribution and then recover from the salary of the employee. Therefore, in view of the aforesaid judgment, we do not find any substance in this appeal. Therefore, the appeal is dismissed. 4. In that view of the matter, the substantial questions of law are answered in favour of the assessee and against the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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