Case Law Details
Hanuman Plantations Limited Vs ITO (ITAT Kolkata)
TAT Kolkata held that post disallowance of employee contribution to PF, only 40% will be taxed as business income in terms of applicable provisions of rule 8(1) of Income Tax Rules, 1962 as assessee is engaged in tea plantation business.
Facts- This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi dated 07.07.2022 for the AY 2019-20.
The assessee in the regular grounds of appeal has challenged the confirmation of addition of Rs. 25,40,572/- by Ld. CIT(A) as made by the AO on account of employees contribution to PF u/s 36(1)(va) r.w.s 2(24)(x) ignoring the fact that this payment was made before the due date of filing of return.
Conclusion- Rs. 19,28,127/- was admitted by the assessee to have been paid beyond the due date under respective Act but was made before the due date of filing of return which was the position of law as on the date of filing of return. The Ld. Counsel for the assessee stated that in view of the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. vs. CIT in TS-791-SC-2022 holding that explanation 2 to Section 36(1)(va) to be retrospective and explanation 5 of Section 43B of the Act are not applicable any more, the assessee withdrew the claim to the extent of Rs. 19,28,127/-.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
