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M/s Bihar State Warehousing Corporation Ltd. Versus Commissioner of Income Tax-1, Dy. Commissioner of Income Tax

2016 (4) TMI 742 - PATNA HIGH COURT

Delayed payment on account of employees provident fund - treated as income in terms of Section 2(24)(x) read with Section 36(1)(va) - Held that:- In view of the aforesaid proposition laid down by the Supreme Court in the case of CIT Vs. Vinay Cements Limited[2007 (3) TMI 346 - Supreme Court of India ] admitted position being that the aforesaid amounts were credited after the due dates of payment under the relevant Acts but much before the date of filing of the return under the Income Tax Act, th .....

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the appellant and learned counsel for the respondent-Revenue. The assessee-appellant, being a Public Sector Undertaking of the Government of Bihar, had filed a return of income declaring total income of ₹ 51,23,740/- on 01.11.2004 for the assessment year 2004-05 and its case was processed. The Assessing Officer passed an order under Section 143(3) of the Income Tax Act by which, inter alia, the delayed payment of ₹ 10,90,330/- on account of employees provident fund was treated as in .....

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ingly, deleted. However, with respect to the balance amount of ₹ 7,04,053/-, the dues of the other months, the Tribunal agreed with the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals) holding that the said delayed payment of employees contribution to ESI and EPF aggregating to ₹ 7,04,053/- has rightly been treated as income of the assessee under Section 2(24(x) of the Act. Accordingly, the addition/disallowance was restricted to the said amount of ₹ .....

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uestion of law has already been decided by this Court by order dated 31.03.2015 passed in Misc. Appeal No. 401 of 2008 (Commissioner of Income Tax-1, Patna & anr. Vs. Alken Laboratories Ltd.) relying upon a decision of the Apex Court dated 07.03.2007 in the case of CIT Vs. Vinay Cements Limited which reiterated the earlier decision of the Apex Court in the case of Commissioner of Income Tax Vs. Alom Extrusions Ltd: (2009) 319 ITR 306 (SC). In Alom Extrusions case (supra) the Apex Court in th .....

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in section) made it mandatory for the Department to grant deduction in computing the income under section 28 in the year in which tax, duty, cess, etc., is actually paid. However, Parliament took cognizance of the fact that the accounting year of a company did not always tally with the due dates under the Provident Fund Act, Municipal Corporation Act (octroi) and other tax laws. Therefore, by way of the first proviso, an incentive/relaxation was sought to be given in respect of tax, duty, cess o .....

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