Case Law Details
In this case high court held that payment of employees contribution under the Employees Provident Fund and Misc. Provision Act, 1952 and the Employees State Insurance Act, 1948 is allowable if paid before the due date of filing Income Tax Return or filing of Income Tax Return whichever is earlier even if the same is paid after the due dates as prescribed under these Welfare Acts.
Assessee had to deposit the employees contribution under the Employees Provident Fund and Misc. Provision Act, 1952 and the Employees State Insurance Act, 1948, each month before the due dates as prescribed under these Welfare Acts to get the benefit of deduction under Section 43B of the income Tax Act, 1961
1. This appeal under Section 260A of the Income Tax Act, 1961 („Act‟) filed by the Appellant, M.V.S. Engineering Limited, is directed against the impugned order dated 5th March, 2004 passed by the Income Tax Appellate Tribunal („ITAT‟) for the Assessment Year („AY”) 1996-97.
2. By an order dated 2nd November, 2004, while admitting the appeal, the Court framed the following question of law for consideration:
“Whether the Income Tax Appellate Tribunal has correctly interpreted the provisions of Section 43B and 2nd proviso thereto, to hold that the Assessee had to deposit the employees contribution under the Employees Provident Fund and Misc. Provision Act, 1952 and the Employees State Insurance Act, 1948, each month before the due dates as prescribed under these Welfare Acts to get the benefit of deduction under Section 43B of the income Tax Act, 1961?”
3. It is seen that the aforesaid question stands answered in favour of the Assessee and against the Revenue by the decision of this Court in Commissioner of Income-tax v. AIMIL Limited (2010) 321 ITR 508 (Del).
4. Accordingly, the impugned order of the ITAT is set aside and the question framed is answered in favour of the Assessee and against the Revenue. The appeal is allowed but in the facts and circumstances of the case, with no orders as to costs.
