TaxTMI 
TaxTMI 
2018 (5) TMI 1488
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....ing total income at Rs. 10,78,110/-, which was processed u/s 143(1) of the Income-tax Act, 1961 (in short 'the Act') on 01/08/2014. Subsequently, the case was selected for scrutiny under CASS and notices u/s 142(1) and 143(2) were issued. In response to the notices, the assessee furnished the information as called for. 2.1 On examination of the information provided by the assessee, the AO noticed from the profit and loss account that the assessee had shown gross receipts at Rs. 13,83,97,691/-. However as per the 26AS statement, the gross receipts were Rs. 14,55,21,239/- and the difference amount was Rs. 71,23,548/-. When questioned for the difference amount, the AR had explained that an amount of Rs. 69,85,664/- pertains to service tax com....
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....ering the submissions of the assessee, elaborately discussed the issue with various case law as well as Board Circular No. 22/2015, dated 17/12/2015 and directed to make the addition of Rs. 33,23,058/- u/s 2(24(x) of the Act out of the total belated payments of Rs. 48,59,869/-, as he allowed an amount of Rs. 15,36,811/-, the payments of which were paid within the grace period of five days. 4. Aggrieved by the order of CIT, the assessee is in appeal before us raising the following grounds: "1. The order of the Administrative Commissioner of Income Tax - 1, Hyderabad is contrary to law, facts & circumstances of the case. 2. The Principal Commissioner of Income Tax - 1, Hyderabad, ought not to have held that the order passed u/s.143(3) d....
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....ount, in the relevant fund, on or before due date, i.e., such date by which assessee is required to credit employee's contribution in the relevant fund, under any Act, Rule, Order or Notification issued therein. In the instant case, due date, therefore, shall be the date mentioned in the 1952 Act or 1948 Act or Rules framed thereunder, etc. by which contributions were to be made. Admittedly as per due date under the relevant Acts, contributions were not paid by the assessee. Section 36(1)(va) talks of only employee's contribution and allow deduction in respect thereto in computing 'income' under section 28. ■ So far as section 43B is concerned, it was inserted with effect from 1-4-1984 to allow deductions provided p....
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....d with effect from 1-4-1984, whereby mercantile system of accounting with regard to tax, duty and contributions to welfare funds stood discontinued. Now it became necessary for the assessee to account for the aforestated items, not mercantile basis, but on cash basis. With effect from 1-4- 1988 section 43B was again amended and a Proviso was inserted. It provided, inter alia, in the context of any sum payable by the assessee by way of tax, duty, cess or fee, if such an assessee pays such tax, duty, cess or fee even after closing of accounting year but before date of filing of return under section 139(1), assessee would be entitled to deduction under section 43B on actual payment basis and such deduction would be admissible for the accountin....
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....by employer's contribution was involved, but the Court did not restrict observations, findings and declaration of law to that context but looking to the objective and purpose of insertion of section 43B applied it to both the contributions, whether by employer or employee. It also observed clearly that section 43B is with a non obstante clause and, therefore, over ride even if, anything otherwise is contained in section 36 or any provision of the Income-tax Act. ■ In view of the aforesaid, the assessee was entitled to deductions under sections 43B and 36(1)(va). 7.1 After considering the ratio laid down by the Hon'ble High Court as above in the said case and respectfully following the same, we hold that no disallowance can b....