TMI Blog2003 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-10-2003 - Judge(s) : K. S. RADHAKRISHNAN., C. KURIAKOSE. JUDGMENT The judgment of the court was delivered by K. S. RADHAKRISHNAN J. -This reference has been made by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961, to consider the following questions: "Whether, on the facts and in the circumstances of the case and on an interpretation of section 43B read with section 36(1)(va) the Tribunal is right in law in holding- (i) the second proviso imposes the condition of payment before the due date only in respect of any sum received by an assessee from his employees to which the provisions of section 2(24)(x) apply, (ii) the assessee is entitled to deduct the sum of Rs. 32,900 being the contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee took up the matter in appeal. The Tribunal noticed that the assessee had issued a cheque for Rs. 32,900 to Life Insurance Corporation on January 18, 1991, after the intimation was received from the Life Insurance Corporation on January 16, 1991. Though the remittance was made in the previous year ending on March 31, 1991, the Commissioner of Income-tax (Appeals) had sustained the disallowance taking the view that the payment had not been made before the due date as per the Explanation to section 36(1)(va). However, the Tribunal felt that the claim for deduction of such contribution should be considered under section 43B de hors the second proviso. The Tribunal held that when the "due date" as defined in the Explanation appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount in the relevant fund on or before the date by which he is legally or contractually required to do so. The right to deduction would be lost if the sum is credited after the due date. This court held that it cannot be an indefinite date left to the choice of the assessee. Further, this court also pointed out that under the main provision of section 43B of the Act, the payments made during the currency of the financial year relevant to the assessment year qualify for deduction in certain cases. But in the case of payments relating to provident fund etc., stress has been laid on payment within the "due date". This court held, therefore, it cannot be said that payment made beyond the due date also qualifies for deduction, in view of the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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