Deduction on actual payment – Payments towards PF and ESIC

January, 28th 2008
CIT vs Dharmendra Sharma
Citation 213 CTR 609Followed CIT vs Vinay Cement Ltd.
213 CTR 268;Deduction on actual payment – Payments towards PF and ESI The payments towards PF and ESI were made before the filing return but after a few days of the grace period. The Tribunal was right in deleting the disallowance. No substantial question of law involved.

High Court of Delhi

CIT vs Dharmendra Sharma

IT Appeal No. 644 of 2007

Madan B. Lokur and S. Muralidhar, JJ

28 November 2007

P.L. Bansal for the Appellant
Rakesh Gupta with Poonam Ahuja for the Respondent

ORDER

By the Court

The Revenue is aggrieved by an order dt. 12th Oct., 2006 passed by the Income-tax Appellate Tribunal, Delhi Bench ‘F’, New Delhi (‘the Tribunal’) in ITA No. 2413/Del/2004 relevant for the asst. yr. 2001-02. The case relates to the addition of an amount of Rs. 10,37,737 and Rs. 1,88,172 made by the AO on account of delayed payment of provident fund and Employees State Insurance respectively. According to the assessee, the amount was paid within 2 to 4 days after the grace period provided under s. 43B of the IT Act, 1961 (‘the Act’) but before filing the return. According to the assessee, it was at best a technical default.