INCOME TAX ACT, 1961

Business deduction under section 36(1)(va): Employer contribution to staff provident fund-Paid before due date of return

Assessee contributed to staff provident fund after prescribed due date but before date of filing of return of income and claimed deduction under section 36(1)(va). AO disallowed impugned deduction on the ground that payment was made after prescribed due date. Held:There was no distinction between employer and employee dues and matter pertained to the eligibility of deduction in respect of staff provident fund due paid after due date prescribed under the relevant statute, but before the date of filing of return. Hence, impugned deduction allowed under section 36(1)(va).

Income Tax Act, 1961 section 36 (1)(va)

Case Law Analysis:CIT v. P.M. Electronics Ltd. [2009] 177 Taxman 1 (Delhi), CIT v. Vinay Cement Ltd. [2007] 166 Taxman 62 (SC) [Para 4] followed.

Decision: In favour of assessee.
A.Y.- 1998-99 to 2001-02

Consulting Engg. Services (India) (P.) Ltd. v. CIT