Provident fund contribution disallowance remanded for fresh adjudication after insufficient evidence on timely cheque deposit and encashment.

Employees' contribution to provident fund was disputed on the basis that the cheque had been deposited within time and encashed later, but the explanation was not supported by adequate evidence before the lower authorities. Because the factual foundation was incomplete, the matter was restored to the Assessing Officer for fresh adjudication in accordance with law after giving the assessee effective opportunity. The appeal was therefore allowed for statistical purposes and the disallowance issue remanded for reconsideration.

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Issues: Whether the disallowance of employees' contribution to provident fund under section 36(1)(va) required fresh adjudication in light of the assessee's explanation regarding deposit and encashment of cheque.

Analysis: The claim that the amount had been deposited through cheque within time and encashed later was not supported by adequate evidence before the lower authorities. In view of the incomplete factual foundation, the matter was restored for re-adjudication by the Assessing Officer in accordance with law after giving the assessee effective opportunities.

Outcome: The appeal was allowed for statistical purposes and the disallowance issue was remanded for fresh consideration.

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