TaxTMI 
TaxTMI 
2015 (7) TMI 1350
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....voking provisions of section 2(24)(x) and 36(1)(vi) of the Act. 2. The learned CIT(A) has granted the relief by holding as under :- "3. In ground No. 2 and 3, the appellant agitates that the addition on account of nonpayment of provident fund was not justified as the issue had already been settled by the Hon'ble ITAT , Jabalpur in favour of the assessee in A.Yr. 1994-95. 2.1 The issue is mentioned in para 8 and 9 on page 5-9 of the assessment order for A.Yr. 200001. The A.O. states that information was received from the M.P.E.B. and the Provident Fund Commissioner which revealed that the amount of contribution collected from employees for the relevant years, was not transferred to the provident fund account. The issue has also been....
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....It was also a fact that this amount was retained and it was not paid during the accounting year to the provident fund trustees fund. This meant that the employees were paid less salary and the recoveries made were retained by the assesse. The fact remained that the amount was retained by the assessee in the form of provident fund contribution and the amount was not transferred to the provident fund trustees fund he, thus, made the addition of the provident fund contribution. 3.3 In the written submission, it was contended that the assessee has repeatedly submitted that there was no stipulated date for the deposit of the provident fund with the trustees fund. The provident fund of MPEB has been granted exemption by the Govt. of MPEB and it....
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....g Officer has rightly added the provident fund not deposited in time to the income of the assesse. 4. On the other hand, the learned AR submitted that this issue has already been decided by ITAT in favour of the assessee and on that basis the learned CIT(A) has granted relief to the assessee. He also submitted that the appeal of the department is pending in the Hon'ble High Court. He also distinguished the facts and circumstances of case laws relied upon by the revenue by submitting as following :- (a) CIT vs. Seth B.D. Gupta (2010) 1 Tax Man.Com 241 (Allahabad) This case relates to a Private person and was governed by the PF and other General Act and Rules. (b) CIT vs. Jai Ram & Sons (2004) 134 Taxman 503 (Kerala) ....
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....rom to time decide. If the amount is left with and merged in the fund of the Board, the Board shall credit the fund with interest on such amount computed on monthly balance once in a year at same rate as they pay to the Govt. or their loans or 4 p.c. whichever is higher." Thus in view of this specific provision contained the obligation to make the payment of PF to the Trust within any due date is eliminated. 3. FUND MANAGEMENT The amount of the PF deducted from the employees all over MP is dealt by the Board in following three ways : (A) Amounts are given as Loan to the members of the Funds all over MP (B) Amounts are paid to the P.F. Trust from time to time for making investments in the Securities (C) Amounts retained by ....