CIT Panchkula Vs Haryana Vidyut Prasaran Nigam Ltd. (Punjab and Haryana High Court)
Punjab and Haryana High Court held that ITAT rightly deleted addition towards contribution to unrecognized provident fund as assessee has duly discharged its onus. Accordingly, petition disposed of.
Facts- Question of law involved in the present petition is that whether ITAT was right in law in deleting the addition of Rs.30,02,13,163/- made on account of contributions to unrecognised provident fund and unapproved pension fund, ignoring the submission of the revenue that there was no proof that the impugned claim by the assessee was as per the Provident Funds Act, 1925. Further, whether ITAT was right in law in upholding the order of CIT(A) that liability payable by the assessee on account of electricity duty payable can be set off by way of allotment of equity shares and that it amounts to discharging of liability u/s 43B of the IT Act, 1961, which requires that liability has to be “actually paid” by the assessee.
Conclusion- Held that the contribution made to the Provident Fund Act, 1925 would therefore, be eligible for registration and as the Trust of the assessee Corporation was duly recognized by CIT vide its letter dated 23/27.09.1999. The assessee had duly discharged its onus, the appeal therefore of the assessee is found to have been allowed rightfully
