TaxTMI 
TaxTMI 
2022 (9) TMI 825
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.... by the learned Assessing Officer ("AO") holding the same to be in excess of the limits prescribed under section 36(1)(iv) of the IT Act read with Rule 87 of the IT Rules. He ought not to have confirmed the disallowance 2. Ground No. 2: Without prejudice to Ground No. 1, on the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in confirming the disallowance of Rs 16.77,419/- under section 438 without giving an opportunity to the appellant to explain that no disallowance could be made u/s 43B of the Act. He ought to have given the opportunity to the appellant for providing the explanation. 2.1 Ground No. 2.1: On the facts and in the circumstances of the case and in law, the learned CIT(A)has not considered the submissions / explanation provided by the appellant He ought to have considered the submission / explanation made by the appellant to the learned AO. 3. Ground No.3: On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in not directing the learned AO to allow short credit for TDS to the extent of Rs 39,477 He ought to have directed the learned AO. 4. Ground No.4: On the ....
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....th therein, in computing the income referred to in section 28 - (iv) any sum paid by the assessee as an employer by way of contribution towards a recognised provident fund or an approved superannuation fund, subject to such limits as may be prescribed for the purpose of recognising the provident fund or approving the superannuation fund, as the case may be; and subject to such conditions as the Board may think fit to specify in cases where the contributions are not in the nature of annual contributions of fixed amounts or annual contributions fixed on some definite basis by reference to the income chargeable under the head "Salaries" or to the contributions or to the number of members of the fund;" "Rule-87 Ordinary annual contributions. 87. The ordinary annual contribution by the employer to a fund in respect of any particular employee shall not exceed [twenty-seven] per cent of his salary for each year as reduced by the employer's contribution, if any, to any provident fund (whether recognised or not) in respect of the same employee for that year." In view of the above, it is clear that any contribution above 27% of the total salar....
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....ovident Funds, Rule-87 deals with Ordinary Annual Contributions to Approved Superannuation Funds and Rule-103 deals with Ordinary Annual Contributions to Gratuity Funds. 7. Limits for contributions as per Part-XII, Recognized Provident Funds. "75. (1) where an employee of a company owns shares in the company with a voting power exceeding ten per cent of the whole of such power, the sum of the contributions of the employee and employer to the recognized provident fund maintained by the company shall not exceed Rs. 250 in any month. (2) For the purpose of clause (a) of sub-rule (4) of rule 5 of Part A of the Fourth Schedule the employer's aggregate contribution in any year, including the normal contribution, to the individual account of any one employee whose salary does not exceed five hundred rupees per mensem shall not exceed double the amount of the contribution of the employee in that year. (3) The amount of the periodical bonuses and other contributions of a contingent nature which may be credited by an employer in any year under clause (b) of sub-rule (4) of rule 5 of Part A of the Fourth Schedule to the individual account of any one employee ....
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.... Ordinary annual contributions as per Part-XIII, Approved Superannuation Funds. 87. The ordinary annual contribution by the employer to a fund in respect of any particular employee shall not exceed [twenty-seven] per cent of his salary for each year as reduced by the employer's contribution, if any, to any provident fund (whether recognised or not) in respect of the same employee for that year. 10. The limit prescribed in Rule 87, having reference of the word 'Provident Fund' is just for sake of fulfilment of conditions laid down with reference to maximum limit of contribution to be made under Superannuation Fund. It's nothing to do with Rule 75 applicable to contributions to be made under Provident Fund. Ordinary annual contributions as per Part-XIV Gratuity Funds. 103. The ordinary annual contribution by the employer to a fund shall be made on a reasonable basis as may be approved by the [Chief Commissioner or Commissioner] having regard to the length of service of each employee concerned so, however, that such contribution shall not exceed 81/3 per cent of the salary of each employee during each year." [1994] 207ITR288 (KER.) Comm....