Income Tax - To assure on-time payments, the stated clause would have been inserted as a Socio-Economic Welfare Measure and has been realized through the Micro and small companies. Section 43B of the Act furnishes for specific deductions to be permitted on real payments only rather than on an accrual basis....
Read MoreIncome Tax - Section 43B of Income Tax Act, 2013 is amended with a new clause (h) in order to provide reliefs made to MSMEs. Section 43B of the Income Tax Act, 2013 provide for any sum paid by the Assessee or Buyer to MSMEs beyond the 45-day time limit which is specified in section 15 of the MSME Development Act. Deduction under section 43B will be al...
Read MoreIncome Tax - MSME means Micro, Small and Medium Enterprises. It has been governed by MSMED Act, 2006. Based on the Investment made by the enterprise in the P&M / Equipment and their turnover they have been classified into Micro, Small and Medium Enterprises. Below is the Revised MSME Classification....
Read MoreIncome Tax - The Micro, Small and Medium Enterprises (MSMEs) sector contributes significantly to the Indian Economy in terms of Gross Domestic Product (GDP), Exports and Employment generation. Share of MSME related product in total Exports from India is around 45%. To protect the rights of the MSME sector Micro Small and Medium Enterprise Act, 2006 wa...
Read MoreIncome Tax - Amendments in Section 43B of Income Tax Act, 1961 proposed by Finance Bill, 2023 concerning MSMEs, its possible effect, & certain suggestions...
Read MoreIncome Tax - We are drawing your kind attention towards Proposed Amendment in Section 43B of The Income Tax Act, 1961, which is detrimental to MSME Sector....
Read MoreIncome Tax - specified under the relevant legislation of the fund. The employees contribution credited to the employees account in the relevant fund after the due date specified under section 36(1)(va) are disallowed to the employer. Further, any payments made by the employer after the due date is also NOT allowed as a deduction in the year of payment...
Read MoreIncome Tax - Before 2008-09, deduction towards leave encashment and gratuity was a controversial issue following a Calcutta High Court judgment in the case of Exide Industries. The court ruled in favour of Exide and against the revenue department, saying that such provisions whether paid or not were eligible for deductions on the basis of actuarial va...
Read MorePaschimanchal Vidyut Vitran Nigam Ltd. Vs DCIT (ITAT Delhi) - ITAT Delhi held that disallowance of Electricity Duty payable by the assessee by invoking provisions of section 43B of the Income Tax Act, 1961 is unwarranted and unjustified....
Read MoreParis Elysees India Private Limited Vs DCIT (ITAT Jaipur) - ITAT Jaipur held that delayed payment of employee contribution to PF/ESI as prescribed u/s 36(1)(va) of the Income Tax Act is beyond the ambit of adjustments to be carried out u/s 143(1) of the Income Tax Act....
Read MoreEnkei Wheels India Ltd. Vs DCIT (ITAT Pune) - ITAT Pune held that interest paid on customs duty is allowable as deduction under section 43B of the Income Tax Act 1961....
Read MoreSubramanya Karthik Vs ITO (ITAT Bangalore) - Subramanya Karthik Vs ITO (ITAT Bangalore) ITAT held that decisions cited by the learned Counsel for the assessee proceed on the assumption that the disallowance of employees’ share of PF and ESI paid beyond the due dates under relevant law has been made only under section 143(1)(a)(iv) of the Act...
Read MoreChase Security Vs ITO (ITAT Bangalore) - Chase Security Vs ITO (ITAT Bangalore) Section 36(1)(va) and Section 43B(b) operate on totally different equilibriums and have different parameters for due dates, i.e., employee’s contribution is linked to payment before the due dates specified in the respective Acts and employer’s contr...
Read MoreCircular No. 37/2016- Income Tax - (02/11/2016) - Disallowances made under sections 32, 40(a)(ia), 40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter ...
Read MoreCircular No. 22/2015-Income Tax - (17/12/2015) - Income Tax Circular No. 22/2015 W.c.f. 1.4.1988, the settled position is that if the assessee deposits any sum payable by it by way of tax, duty, ecss or fee by whatever name called under any law for the time being in force, or any sum payable by the assesse as an employer by way of contribution to ...
Read More(01/01/1970) - Whether the liability has been deferred or not has to be considered not from the simplistic point of the term 'defer' but in context of the incentive scheme for deferral, as is evident from the circular issued by Central Board of Direct Taxes. The subject matter of Circular no.496 dated 25th Septemb...
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Paschimanchal Vidyut Vitran Nigam Ltd. Vs DCIT (ITAT Delhi) -
Paris Elysees India Private Limited Vs DCIT (ITAT Jaipur) -