Income Tax Act, 1961

--Business deduction under section 36(1)(va)--Employees contribution to provident fund Paid before due date of filing of return--Assessee received contribution towards provident fund from employees which was paid by assessee in the next accounting year but before due date of filing of return under section 139 and claimed deduction for the same. Assessing officer disallowed the claim. Commissioner (Appeals) held that the money thus paid was no longer in the hands of employer and accordingly, could not be treated as income in the hands of assessee. The same was upheld by Tribunal. Department contended that section 36(1)(va) makes it a deduction in the event the contribution thus received was deposited on or before due date. Held: Due date referred to in section 36(1)(va) must be read in conjunction with section 43B(b) which makes it clear that due date as mentioned in section 36(1)(va), was due date mentioned in section 43B(b), i.e., payment/contribution made to the provident fund authority any time before filing the return for the relevant year. Therefore, department by not taking note of provisions of section 43B(b), committed gross error and consequently, order of Tribunal was not interfered.

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

Income Tax Act, 1961, Section 43B

IN THE Uttarakhand High Court

Barin Ghosh, C.J. & V.K. Bist, J.

CIT v. Kichha Sugar Co. Ltd.