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2023 (6) TMI 561 - AT - Income TaxDelayed employees contribution to PF u/s 36(1)(va) r.w.s 2(24)(x) - As admitted by the assessee to have been paid beyond the due date under respective Act but was made before the due date of filing of return - HELD THAT:- As in view of the decision of Checkmate Services P. Ltd. [2022 (10) TMI 617 - SUPREME COURT] holding that explanation 2 to Section 36(1)(va) to be retrospective and explanation 5 of Section 43B of the Act are not applicable any more, the assessee withdrew the claim to the extent of Rs. 19,28,127/- - set aside the order of Ld. CIT(A) and direct the AO to allow the claim of the assessee. Computation of income of the assessee engaged in growing and manufacturing of tea - HELD THAT:- Rule 8(1) of Income Tax Rules, 1962 which provides for manner of computing taxable income in the assessee is engaged in tea plantation business provides that the total income arrived at shall be apportioned in the ratio of 60:40 and 60% would be treated as agricultural income and remaining 40% would be business income. Therefore we find merit in the arguments of the ld counsel that the disallowance of EPF has to be first added to the income of the assessee and only thereafter 40% would be taxed as business income. Thus the income of Rs. 6,92,424/- is be treated as business income being 40% of income of manufacturing of tea as per Rule 8 of Rules, 1962 instead of Rs. 23,43,506/- assessed as per intimation u/s 143(1). Decided in favour of assessee.
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