Adani Electricity Mumbai Ltd Vs AO CPC (ITAT Ahmedabad)
ITAT Ahmedabad held that PFRDA Act, 2013 doesn’t prescribed any due date for payment of employee’s contribution to National Pension Scheme (NPS). Thus, since payment is made before filing return u/s. 139(1), the same is allowable u/s. 43B(b) of the Income Tax Act.
Facts- In the course of assessment proceedings, the Assessing Officer at the CPC made a disallowance u/s. 36(1)(va) concerning employees’ contributions to the National Pension Scheme (NPS), amounting to Rs. 3,34,28,177/-. Being aggrieved by this disallowance, the assessee appealed to the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (CIT(A)-NFAC), in which the CIT(A) upheld the Assessing Officer’s disallowance of Rs. 3,34,28,177/- for the employees’ contribution to the NPS.
Conclusion- Held that there was no due date prescribed in respective PFRDA Act, 2013 as to when payment was required to be made to NPS account. Further, all payments were duly made before filing of return of income as per section 139(1) of the Act. The ITAT held that the impugned adjustment made on payment under NPS was not justified and amount in question was to be treated as allowable under Section 43B(b) of the Act.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
