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TMI Blog2017 (3) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... processed under section 143(1) of the Income Tax Act, 1961 (in short 'the Act') and the case was subsequently taken up for scrutiny. The assessment was completed under section 143(3) of the Act vide order dated 31.01.2015 wherein the assessee's income under normal provisions was determined at Rs. 16,34,64,440/- in view of the following disallowances: - (i) Under section 2(24)(x) r.w.s 36(1)(va) on account of delayed payments of EPF Rs. 28,70,807/- (ii) Interest on delayed payment of TDS Rs. 71,043/- (iii) Disallowance under section 43B Rs. 39,16,035/- 2.2 Aggrieved by the order of assessment for A.Y. 2012-13 dated 31.01.2015, the assessee preferred an appeal before the CIT(A)-24, Mumbai, which was dismissed vide t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of income for A.Y. 2012013. According to the learned A.R. of the assessee this issue in question, i.e. payment of contribution to Employees Provident Fund (EPF) is covered in favour of the assessee by the decision of the Hon'ble Bombay High Court in the case of CIT vs. Hindustan Organic Chemicals Ltd. (2014) 366 ITR 1) (Bom). 3.3 Per contra, the learned D.R. for Revenue placed strong reliance on the decision of the learned CIT(A) on this issue. 3.4.1 We have heard the rival contentions and carefully considered the material on record, including the judicial pronouncements cited and placed reliance upon. It is not disputed that the fact situation is that though the contribution of EPF was not paid within the period specified un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted in the Act with effect from 1st April 1984 by which the mercantile system of accounting with regard to tax, duty and contribution to welfare funds stood discontinued and under section 43B of the Act, it became mandatory for the Assessees to account for the aforestated items not on a mercantile basis but on a cash basis. This situation continued between 1st April 1984 and 1st April 1988 when Parliament again amended section 43B and inserted the first proviso thereto which inter alia laid down 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated further difficulties for the Assessees - employers. Therefore, Industry once again made representations to the Ministry of Finance who, after taking cognizance of the difficulties, inserted an amendment vide Finance Act, 2003 which came into force with effect from 1st April 2004. In other words, with effect from 1st April 2004, two changes were made in section 43B viz. deletion of the second proviso to section 43B and further amendment in the first proviso which reads as under:- "Provided that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub- section (1) of section 139 in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n behalf of the Revenue. 9. Even otherwise, we fail to understand how this deduction could have been disallowed to the Assessee. Admittedly, the Assessment Year in question is 2006-07. The second proviso to section 43B quoted above was deleted with effect from 1st April 2004 and simultaneously the first proviso was also amended bringing about a uniformity in deductions claimed towards tax, duty, cess and fee on the one hand and contribution to the employees' provident fund, superannuation fund and other welfare funds on the other. These deductions being claimed in the return of income filed for the Assessment Year 2006-07, the amendments to Section 43B which came into force with effect from 1st April 2004 would have clearly applied to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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