2014 (7) TMI 477 - HC - Income Tax

Allowability of delayed payment of PF – Held that:- Section 43B was amended and the first proviso was inserted which provides that in the context of any sum payable by the Assessee by way of tax, duty, cess or fee, if paid by the Assessee even after the closing of the accounting year but before the date of filing of the return of income, the Assessee would be entitled to the deduction u/s 43B on actual payment basis and such deduction would be admissible for that accounting year - the Assessees – employers were entitled to deductions only if the contributions to any fund for the welfare of the employees stood credited on or before the due date given in the relevant Act - the amendments introduced by the Finance Act, 2003 put on par the benefit of deductions of tax, duty, cess and fee on the one hand with contributions to various Employee’s Welfare Funds on the other.

Relying upon Commissioner of Income Tax v/s Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] - the amendments to the section brought about by the Finance Act, 2003 with effect from 1st April 2004 were retrospective in nature and would operate from 1st April 1988 – thus, the Tribunal was fully justified in deleting the addition on account of delayed payment of Provident Fund of employees' contribution – thus, no substantial question of law arises for consideration – Decided against Revenue.

Bond registration charges u/s 37(1) of the Act – Held that:- CIT (Appeals) as well as the Tribunal merely followed the decisions in the case of this very Assessee in the preceding years in deleting the disallowance incurred towards bond registration charges – Tribunal came to the finding that the expenditure was a revenue expenditure and allowable u/s 37(i) of the Act – the finding of the Tribunal cannot be in any way said to be vitiated on the ground of perversity or any error apparent on the face of the record - thus, no substantial question of law arises for consideration – Decided against Revenue.