The Assessing Officer also disallowed the expenditure under section 14A of the Income Tax Act, 1961 without first recording that he was not satisfied with the correctness of the claim as regards the claim that “no expenditure” was made by the assessee. Disallowance under section 14A of the Income Tax Act, 1961 is plainly contrary to the provisions of the statute.
Amount deposited on account of employees’ contribution to PF beyond the due date was deductible by invoking the amended provision of section 43B of the Act.
HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
ORIGINAL SIDE
COMMISSIONER OF INCOME TAX, CENTRAL II
Versus
M/S. R.E.I. AGRO LTD.
GA 3022 OF 2013, ITAT 161 OF 2013
BEFORE:
The Hon’ble JUSTICE GIRISH CHANDRA GUPTA
The Hon’ble JUSTICE JYOTIRMAY BHATTACHARYA
Date : 23rd December, 2013.
ORDER
The Court : The Assessing Officer disallowed the contribution made by the assessee towards provident fund to the extent of a sum of Rs.1,92,913/- on the ground that the deposit was made beyond the stipulated time.
The Assessing Officer also disallowed the expenditure under section 14A of the Income Tax Act, 1961 without first recording that he was not satisfied with the correctness of the claim as regards the claim that “no expenditure” was made by the assessee.
The contribution towards provident fund, even if deposited beyond the stipulated period, is allowable by virtue of the amendment and the disallowance under section 14A of the Income Tax Act, 1961 is plainly contrary to the provisions of the statute. The CIT, in the circumstances, allowed the appeal of the assessee and the Tribunal did not interfere.
Challenging the order of the tribunal, the present appeal has been filed.
