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TMI Blog2017 (3) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 201(1) and 201(1A) of the I.T. Act. 2. Since common issues are involved in these appeals, they were heard together and are being disposed of in this consolidated order. 3. Identical several grounds are raised in these appeals. All the grounds relate to the issue whether the orders passed u/s. 201(1) and 201(1A) are valid or not? 4. The brief facts of the case are as follows: For the assessment years 2007-08 and 2008-09, the Assessing Officer noticed that the assessees while making TDS on salaries u/s. 192 of the Act, there were short deductions of tax. The reason for short deductions of tax was that while computing taxable salary, the assessees were deducting u/s. 80C of the Act, contributions to unrecognized Provident Fund. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Provident fund are not established under a scheme framed under the Employees' Provident Funds Act, 1952 (19 of 1952). 9. I have heard the rival contentions and perused the material on record. The assessees while making TDS on salaries u/s. 192 of the Act had claimed contributions to the Provident Fund as eligible deduction u/s. 80C (2) (vi) of the Act. The Assessing Officer held that the contributions to Provident Fund are not recognized u/s. 2(38) of the Act and were not eligible for deduction u/s. 80C of the Act, hence, there were short deductions u/s. 192 of the Act. Further, it was held by the Assessing Officer that interest on the Provident Fund was liable to be taxed under the head 'Income from other sources'. To understand th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter dated 14/02/2017 (which is placed on record) very categorically states that the Provident Fund of the assessees is not established as per the scheme framed under the Employees Provident Funds Act, 1952. Assessee also does not have case that its PF is established under a scheme framed under the Employees Provident Fund Act, 1952 (19 of 1952). That being the case, admittedly, the assessees' contributions to the Provident Fund are not recognized Provident Fund u/s. 2(38) of the Act and the contributions are not entitled to deduction u/s. 80C (2)(vi) of the I.T. Act. If the contributions are not eligible for deduction u/s. 80C of the Act, there are resultant short deductions of tax u/s. 192 of the Act. Consequently, the interest accrued on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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