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2010 (5) TMI 176 - HC - Income TaxLate deposit of employee’s contribution to the PF – Additions on account of late deposit of EPF and FPF - . The CIT(A) held that since all the payments were made within the grace period the relief of Rs.21,99,799/- deserves to be granted. - Tribunal upheld the order of the CIT(A) by observing that payments have been made within the grace period, the additions made by the Assessing Officer have been rightly deleted by the CIT(A). – Held that: - Hon'ble the Supreme Court (in Alom Extrusions Limited - 2009 -TMI - 35073 - SUPREME COURT) has held that the omission of the 2nd proviso to Section 43 B of the Act by Finance Act 2003 operated retrospectively from 1.4.1988 - The Honble Supreme Court further held that before amendment of the 2nd proviso to Section 43 B of the Act, the assessee were entitled to deduction only if the contribution stood credited on or before the due date given in the Provident Fund Act which created further difficulties. On a representation made to the Finance Ministry, one more amendment was made by Finance Act No. 2003 which was to apply retrospectively w.e.f. 1.4.1988. The rationale of Hon'ble the Supreme Court is that when a proviso in a section is inserted to remedy unintended consequences and to make the section workable, the proviso which supplies an obvious omission therein is required to be read retrospectively in operation, particularly to give effect to the section as a whole. In order to achieve that object strict and literal construction should be avoided.
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