TaxTMI 
TaxTMI 
2022 (3) TMI 1070
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....ision of Karnataka High Court in the case of CIT Vs. Sabari Enterprises (2008) 298 ITR 141 where High Court has held that the payments deposited before the due date of filing return should be considered as allowable expenditure u/s. 36(1)(va) of Income Tax Act, 1961. The Learned CIT(A) has erred in relying the decision of Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation reported in 366 ITR 170 when the jurisdictional ITO judgment is binding on the assessee and department. 4. The learned CIT(A) has erred in relying on the amendment made in section 36(1)(va) though the said amendment is applicable from the AY 2021-22 and onwards. In the recent Judgment by Hyderabad Income Tax Appellate Tribunal in the case of Salzgitter Hydraulics (P.) Limited (order dated 15.06.2021) and in the case of Value Momentum Software Services Private Limited (order dated 19.05.2021) it has been held that the amended provisions of section 36(1)(va) has no application since this amendment is applicable from 01.04.2021 onwards and it is further held that it should be understood that the legislature itself has condoned the impugned default before 01.04.2021. Further, i....
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....hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the "due date" under this clause." The finance Act, 2021 also amended section 43B by inserting Explantion-5 thereto which reads thus: "Explanation 5.--For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply and shall be deemed never to have been applied to a sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 applies." According to the CIT(A), by virtue of newly inserted Explanation 2 to clause (va) of sub-section (1) of the said section, the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the "due date" under the said clause. The CIT(A) also held that Section 43B of the Income-tax Act relates to allowing certain deductions only on actual payments. Clause (b) of the said section provides that any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other....
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....rvices Pvt. Ltd. v. CIT [2018] 96 taxmann.com 13/257 Taxman 120/406 ITR (Ker), CIT Vs. Bharat Hotels 410 ITR 417 (Delhi). 6. The CIT(A), thereafter held that the amendment to section 36(1)(va) by insertion of explanation 2 and the amendment to section 43B by insertion to explanation 5 by the Finance Bill 2021 was only declaratory/clarificatory in nature and there therefore was applicable with retrospective effect by necessary intendment of deeming nature expressly stated therein. The CIT(A) upheld the addition made by the AO. 7. We find that identical issue has been considered in the following decisions: M/s. Mahadev Cold Storage Vs. Jurisdictional AO - ITA No. 41 & 42/Agra/2021 M/s. Essae Teraoka (P.) Ltd. Vs. DCIT - [2014] 43 taxmann.com 33 (Karnataka) Anand Kumar Jain Vs. ITO - ITA No. 4192/MUM/2012 Value Momentum Software Services Private Limited vs. DCIT I.T.A. No. 2197/HYD/2017 [Assessment Year: 2013-14] dated 19.05.2021 Mohan Ram Chaudhary vs. ITO ITA No. 51 & 54-55/Jodh/2021 [Assessment Year: 2018-19] dated 28.09.2021 8. The Hon'ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd., (supra) has taken the vi....
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....f Public Enterprise, dated 02.04.2016, is as follows: "To promote and encourage the performance of the public enterprises and to select the public enterprises for Chief Minister's Annual Rathna Award. Selection Committee Meeting was held or 14-12-2016 and 26-12-2016 under the Chairmanship of Principal Secretary to Government, Department of Public Enterprises. The selection committee decided to comply with the following criteria for selecting the enterprises for the award. a) There must be sustained profits over the past three financial years. b) There should be no cumulative loss. c) Dividends should have been paid to the Government. d) Significant CSR activities should have been undertaken each year. Considering the enterprises that have successfully fulfilled most of the above conditions, the following four enterprises have been selected for the prestigious Chief Minister's Annual Rathna award for the year 2016-17 with a cash prize of Rs. 3.75 lakhs per enterprise. 1. Karnataka State Seeds Corporation Limited 2. Karnataka Silk Industries Corporation Limited 3. Karnataka Soaps and Detergents L....