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TMI Blog2015 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 43B of the Income Tax Act makes it clear that if the assessee (employer) credited any sum received by him from any of his employees on or before the due date, that is, the date by which the assessee (employer) is required to credit the employees' contribution to the employees' account in the relevant fund (including the Provident Fund), he will be entitled to deduct the said amount in computing his business income. But, Section 43B controls the allowability of deduction of payment specified in clauses (a) to (d) thereof and provides certain conditions subject to which alone the deductions may be permissible. Enunciating the point, it was held that deduction would be available only if the remittance to the fund is made within the due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of Provident Fund amount. Provident Fund amounting to ₹ 7,69,632/- relating to the assessment year 1992-93 and ₹ 7,60,047/- relating to the assessment year 1993-94. The Department took the stand that the assessee is not entitled to the deduction on the ground that the payment has not been made on the due date as defined in the Explanation to clause (va) of sub-section (1) of Section 36 of the Income Tax Act. The CIT Appeals followed the Tribunal decision in I.T.A. Nos.194 (Coch)/92 and 361 (Coch)/94. The Department's contention in the case in hand was left unanswered leaving it open to the Department to make a reference application, though it is submitted that another reference application under Section 256(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons subject to which alone the deductions may be permissible. Enunciating the point, it was held that deduction would be available only if the remittance to the fund is made within the due date fixed for making such remittance into the fund; in the case in hand, the Provident Fund. So much so, the question referred is to be answered in favour of the Revenue. Hence we answer the reference by holding that on the facts and in the circumstances of the case, the assessee is not entitled to claim deduction of the belated payment to the Provident Fund in view of the provisions of the Explanation to clause (va) of Sections 36(1) and 43B of the Income Tax Act, in the light of the law laid in Hitech (India) Pvt. Ltd., vs. Union of India and others (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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