AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 859
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....late Tribunal, Jabalpur (for brevity "the Tribunal") in I.T.A.No.69/Jab/2005. The assessment year involved is 1994-95. 2. This appeal was admitted on 09.03.2007 for determination of the following substantial questions of law:- "(i) Whether assessee is entitled for deduction of Rs. 1.50 Crores on account of contribution to National H.V..D.C. Project under section 37(1) of the Income Tax Act and CIT(A) was justified in allowing the deduction? (ii) Whether ITAT was justified in upholding the order of CIT(A) in allowing the deletion of addition of Rs. 24,25,05,585/- of Provident Fund which was not paid on due date under section 36(1)(va)? 3. The facts of the case as borne out from the memo of appeal filed by the Revenue ....
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....e, the CIT(A) and the learned Tribunal have committed an error in deleting the addition of Rs. 1.50 Crore on account of contribution to the said fund. It was then submitted that further deletion of addition of an amount of Rs. 24,25,05,585/- accepted by the CIT(A) and the Tribunal is per se illegal inasmuch as the said amount was collected by the assessee towards contribution to the provident fund. As the assessee was covered under the Employees Provident Fund Act, 1952 but the assessee did not deposit the same with the P.F. Trust within the due date as provided under Section 36(1)(va) of the Act, therefore, the said deduction was not admissible. For these reasons only the Assessing Officer had denied the deductions claimed by the assessee ....
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.... as under:- "All money contributed to the fund by the Board or by a subscriber or accruing by way of interest or otherwise to such fund shall remain invested with the Board or in such securities as the Trustees may from time 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." Learned counsel also placed on record an order dated 06.02.2017 passed by a Division Bench of this Court in ITA No.1/2016 (Principal Commissioner, Income Tax v. M.P.E.B.) decided on 06.02.2017 wherein the appeal of the Revenue against the afore....
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....nd the Chairman, APSEB were committed to contribute Rs. 15 Crore each, we find that there was material before the Assessing Officer to adjudge the admissibility of the said deduction in favour of the assessee particularly when the said step taken by the assessee was in accordance with Section 24 of the Electricity (Supply) Act, 1948 (in short "the Electricity Act"), which was applicable to assessee. Section 24 of the said Act enabled the Electricity Board to subscribe to associations constituted for the purpose conducive to development of electricity and promotion of common interest of persons engaged in generation, distribution and supply of electricity. The provision was also considered by the Assessing Officer but without dealing with th....
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....he ground taken by the revenue is rejected." 8. Before adverting to the second question with regard to allowing the deletion of addition of Rs. 24,25,05,585/- of provident fund which was not paid on due date under Section 36(1)(va) of the Act, it would be apposite to refer to the relevant statutory provision which reads, thus:- "Other deductions 36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- *** *** *** (va) any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the asse....