Adani Petronet (Dahej) Port Pvt Ltd Vs AO Circle-1(1)(1) (ITAT Ahmedabad)
ITAT Ahmedabad held that contribution under National Pension System (NPS) belatedly, however, before filing of return is allowable as deduction u/s. 43B(b) of the Income Tax Act as there is no due date prescribed for payment under NPS.
Facts- The assessee is a Company engaged in Port activities. The return of the assessee was taken for prima facie adjustment and a communication was sent to the assessee as to why not disallow Rs.8,19,544/- being belated payment of Employees contribution to PF Fund. Post receipt of reply from the assessee, CPC rejected the same and added Rs.8,19,544/- as the income of the assessee and demanded tax thereon.
NFAC dismissed the appeal filed by the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that the contribution is made under NPS before due date of filing Return of Income. NPS is regulated by Pension Fund Regulatory and Development Authority and PFRDA Act, 2013. There is no due date prescribed by the PFRDA as to when the payment is required to be made to the NPS account. Further section 12[3][iii] of the PFRDA Act, 2013 clearly prohibits the provisions of this Act shall not apply to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Thus the impugned adjustment made on the payment under NPS by CPC is not justified as there is no due date prescribed in the respective PFRDA Act, 2013 and all the payment has been duly made before filing of the Return of Income as per section 139[1] of the Act. Therefore the amount of Rs.8,19,544/- is treated to be allowable u/s.43B[b] of the Act.
