TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 1537
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.... Income Tax Act, 1961 by the learned Pr. Commissioner of Income Tax -II, Hyderabad is against law and facts of the case. 2. The learned Pr. Commissioner of Income Tax-II ought not to have exercised the jurisdiction u/s. 263 of the LT. Act, 1961, inasmuch as, the order sought to be revised is neither prejudicial to the interest of Revenue nor erroneous. 3. The Learned Pr. Commissioner of Income Tax-II ought to have appreciated that there is conflict of judicial opinion on the issue which was the subject-matter of revision us. 263 of LT. Act, 1961 and, therefore, ought not to have exercised the jurisdiction u/s. 263 of I. T. Act, 1961. 4. The Learned Pr. Commissioner of Income Tax-II ought to have appreciated that even the employees'....
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....thorised Representative of the assessee submits that the employees P.F. contributions are paid within the due date of furnishing of return under section 139(1) of the I.T. Act and hence allowable as deduction under section 43B. He, further argued that its case is squarely covered by the two Judgments of Hon'ble Karnataka High Court in the case of EssaeTeraoka P. Ltd. vs. CIT reported in 366 ITR 408 (Kar) and CIT vs. Sabari Enterprises reported in 298 ITR 141 (Kar). He also relied on the Coordinate Bench decision in the case of Imerys Ceramics (India) P. Ltd., ITA.No.43/Hyd/2010 and accordingly requested to quash the order of Pr. CIT-II. 5. The learned D.R., on the other hand, strongly relied upon the Order of Pr. CIT-II and requested to up....
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....tance shall make the total contribution including employees share himself. Paragraph 32 provides for recovery of members share of contribution and as per the scheme the employer can recover it from the wages paid to the employees. Therefore, as per the P.F. Act and scheme of contributions, it means and include both employees and employers share. Section 2(c) of the P.F. Act defines the contribution to mean a contribution payable in respect of a member under the scheme or the contribution payable in respect of an employee to whom the insurance scheme applies. There is a prescribed mode of payment of contributions under the P.F. Act. Under the said Act, the 'employer' shall contribute both employees and employers share along with administrati....
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....f such contribution is made on or before the due date of furnishing the return of income under section 139(1), then deduction is to be allowed under section 43B of the I.T. Act. These propositions were upheld by various High Courts and in one such case, the Hon'ble Karnataka High Court in the case of EssaeTeraoka P. Ltd. vs. CIT 366 ITR 408 (Kar) has held as under : "15. From bare perusal of this provision, it is dear that under the provision, for IT Act, an extension is given to the employer to make payment of contribution to provident fund or any other fund till the "due date" applicable for furnishing the return of income under sub- section(1) of section 139 of the IT Act in respect of the previous year in which the liability to pay su....
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....ragraph-29 in Chapter- V of the PF Scheme, it would mean that the contributions payable by the employer under the Scheme shall be at a particular rate and the contribution payable by the assessee shall be equal to the contribution payable by the employer. 18. Paragraph-30 of the PF Scheme provides for payment of contributions. Sub-para(1) of paragraph- 30 states that the employer shall, :=n the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer's contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in this Scheme referred to as the member's contribution). 19. From bare perusal of sub-p....