2018 (1) TMI 73

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng an addition of Rs. 1,75,742/- being payment of contribution of Employees for P.F. on the ground that the same have been paid late. It is submitted that the learned CIT(A) has erred in incorrectly invoking provisions of Section 36(1) (va) and has wrongly interpreted provisions of Section 43B of the I.T. Act. It is submitted that on facts and circumstances of the case there is no justification both on facts and on law for such disallowance as the same has been paid before filing of Return u/s.139(1). It is submitted that the addition of Rs. 1,75,742/- be deleted. 2. The relevant facts as culled out from the materials on record are as under:- In this case, assessee is engaged in the business of Construction contracts. During the year ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....this connection, we have to state that as section 2(24)(x) provides that amounts received by an assessee from employees towards PF contributions etc. shall be "income". Further, Section 36(1)(va) provides that if such sums are contributed to the employees account in the relevant fund on or before the date specified in the PF etc. legislation, the assessee shall be entitled to a deduction. The second Proviso to section 43B (b) provided that any sum paid by the assessee as an employer by way of contribution to any provident fund etc. shall be allowed as a deduction only if paid on or before the due date specified in 36(1)(va). But after the omission of the second Proviso to section 43B of the Act by the Finance Act, 2003 w.e.f. 1/4/2004, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tention of the assessee was considered but the same was not acceptable to the learned AO and an amount of Rs. 1,75,742/- is treated as assessee's income u/s.2(24)(x) of the I.T. Act and same is added to the total income. 3. Therefore, the learned assessee preferred first statutory appeal before the learned CIT(A) who dismissed the appeal of the assessee. 4. Now appeal is before us. 5. We have gone through the relevant record. We have heard both the parties. This issue is covered against the appellant by the judgment of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation, 41 Taxman.com 100, relevant extract from the judgment is quoted as under:- "Section 43B, read with section 36(1)(va) of the....