Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (1) TMI 913 - AT - Income TaxDisallowance of employees and employer ESI and contribution to provident fund beyond the grace period allowed under the respective statute – Held that:- amendment to proviso to section 43B as per Finance Act, 2003 is retrospective in nature. But in this case the disallowance has been made in respect of employees contribution also. The employees contribution towards P.F. and ESIC are treated as income u/s 2(24) of the Act and thereafter are allowable as a deduction u/s 36(1)(va) of the Act. There is no amendment in section 36(1)(va). As this expenditure is specifically governed by section 36(1)(va), the claim cannot be allowed u/s 37. Section 43B comes into play, if the expense is otherwise allowable under the Act. As the employees contribution in this case is not allowable u/s 36(1)(va) of the Act, for the reason that the same is not paid within the due date, order of the first appellate authority upheld and dismiss this ground of the assessee, issue set aside to the file of the AO for fresh adjudication in the light of the decision of the Hon'ble Supreme Court in the case of Alom Exclusions(2009 - TMI - 35073 - SUPREME COURT), as the dates of payment are not on record, and allow payments made before the due date of filing of the return.
|