TMI Blog2003 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Assessing Officer in disallowing the provident fund contribution & administrative charges u/s 43B(b) - - - - - Dated:- 19-11-2003 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The question referred at the instance of the Revenue is as to whether the Tribunal was right in restoring the order of the Assessing Officer in disallowing the provident fund contribution amounting to Rs. 1,47,584 and administrative charges of Rs. 12,310 under section 43B(b) of the Act thereby reversing the order of the first appellate authority. The assessment year is 1988-89. It is not in dispute that the amounts referred to in the question were paid before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch tax or duty is disputed or not) or any sum payable by the assessee as an employer by way of contribution to any provident fund, or superannuation fund or gratuity fund or any other fund for the welfare of employees shall be allowed only in computing the income of that previous year in which such sum is actually paid by him". The court held that: "section 43B was, therefore, clearly aimed at curbing the activities of those taxpayers, who did not discharge their statutory liability of payment of excise duty, employer's contribution to provident fund, etc., for long periods of time but claimed deductions in that regard from their income on the ground that the liability to pay these amounts had been incurred by them in the relevant previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified under the Employees' Provident Fund Act, even though the actual date of payment may have been on the day subsequent to the close of the relevant previous year. In that case of Allied Motors [1997] 224 ITR 677, the Supreme Court quoted with approval the words of Judge Learned Hand and observed that; "one cannot make a fortress out of the dictionary; and should remember that statutes have some purpose and object to accomplish whose sympathetic and imaginative discovery is the surest guide to their meaning". The court thereafter held that: "a proviso which is inserted to remedy unintended consequences and to make the provision workable, a proviso which supplies an obvious omission in the section and is required to be read into the sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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