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2013 (4) TMI 696 - AT - Income TaxDisallowance of the employer's contribution to provident fund - Held that:- Supreme Court in the case of CIT v. Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] has held that the amendment to the first proviso and omission of the second proviso to section 43B by the Finance Act, 2003 is retrospective. The hon'ble Delhi High Court in the case of CIT v. Aimil Ltd. [2009 (12) TMI 38 - DELHI HIGH COURT] has allowed deduction in respect of employees' share when the amount was paid before the due date. When we consider these two judgments, it becomes clear that both the employer's and employees' contribution are allowable as deduction if the amount of provident fund, etc., though belatedly, but is paid before the due date of filing of return under section 139(1) of the Act. Per contra, if the amounts are not paid before the due date, then the amount cannot be allowed as deduction in the relevant year. However the deduction would be available in the year of payment. Since these two amounts were disallowed in the preceding year on the ground that these were not paid before due date of filing the return for the assessment year 2006-07, naturally the deduction would be available on payment of such amounts falling within the previous year relevant to the assessment year under consideration. We, therefore, overturn the impugned order on this issue and order for the deletion of both additions. - Decided in favour of assessee.
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