2019 (6) TMI 1223

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....sessee is a company engaged in the manufacture/production of tea, rubber etc. The issues in the appeals relate to assessment of income tax for the assessment years 2007-08 to 2010-11. 3. The substantial questions of law for consideration in these appeals are the following: (i) Whether the delayed payments made to Employees' Provident Fund, Labour Welfare Fund and Employees' State Insurance is allowable as deduction under Section 36(1)(va) of the Income Tax Act, 1961 (for brevity "the Act")? (ii) Whether licence fee paid to RPG Enterprises Limited is allowable as a deduction under Section 37 of the Act? (iii) Whether the consideration obtained on sale of old and unyielding rubber trees is exigible to tax....

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....h are deducted at the time of payment of salary is received by the employer-company and is treated as income under section 2(24). On remittance of this contribution, within the due date, it is allowed as a deduction under Section 36. If it is not paid to the welfare fund within the due date provided under the relevant statute, it remains as an income in the books of account of the assessee/employer-company.The said contribution having not been paid to the applicable welfare fund within the due date provided, the assessee for all time is deprived of claiming such a remittance, made subsequently, as deduction from the income." 7. In the light of the aforesaid dictum laid down by the Division Bench of this Court in Popular Vehicles and Serv....