TMI Blog2014 (2) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... yee’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 Limited [2009 (11) TMI 27 - SUPREME COURT] - Though such contributions are not paid within the time prescribed under the relevant act, if those contributions are paid before the due date prescribed under Section 139(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee did not file any appeal. He filed an application under Section 264 of the Act before the Commissioner, pleading that such remittances were allowable more so because all such remittances had been made prior to last date fixed for filing its return under Section 139(1) of the Act and a major portion had been remitted during the very financial year ended on 31.3.2006. They relied on the judgment of this Court in the case of COMMISSIONER OF INCOME-TAX AND ANR. v. SABARI ENTERPRISES reported in (2008) 298 ITR 141 (Kar) and contended, the same is approved by the Apex Court in the case of COMMISSIONER OF INCOME-TAX v. ALOM EXTRUSIONS LTD. reported in (2009) 319 ITR 306 (SC). The Commissioner rejected the petition by its order dated 16.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployee s contribution. That is why, the Division Bench of this Court, in the aforesaid SABARI s case, granted relief, which order has been now affirmed or approved by the Apex Court in the case of COMMISSIONER OF INCOME-TAX v. ALOM EXTRUSIONS LTD. , which has elaborately gone into the question of law prior to the amendment and subsequent to the amendment and question whether these amendments are prospective in nature or retrospective in nature and then it has come to the conclusion that the amendments are in the nature of curative provision and therefore, they have extended the benefit of the Section to such contributions. In fact, in the special leave petition filed by the Department against the judgment of this Court in SABARI s case whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent] or [twelve per cent], as the case may be, of his basic wages, dearness allowance and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act]. (3) The contributions shall be calculated on the basis of [basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any)] actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis. (4) Each contribution shall be calculated to [the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise to be ignored. 6. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses, fix.] 7. Section 31 deals with employer s share of contribution: 31. Employer s share not to be deducted from the members: Notwithstanding any contract to the contrary the employer shall not be entitled to deduct the employer s contribution from the wages of a member or otherwise to recover it from him. 8. 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% of the basic wages, Dearness Allowance. The contribution payable by the employee shall be equal to the contribution payable by the employer in respect of such employee. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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