South India Corporation Ltd.[2015] 58 taxmann.com 208 (Kerala)MARCH 27, 2015
Hitech (India) (P.) Ltd. v. Union of India [1997] 227 ITR 446/94 Taxman 454 (AP) (para 4) followed
two provisions were considered by the Hon'ble Andhra Pradesh High Court in Hitech (India) (P.) Ltd. v. Union of India [1997] 227 ITR 446/94 Taxman 454 in which it was held that a combined reading of clause (va) of Section 36(1) and Section 43B of the Income Tax Act makes it clear that if the assessee (employer) credited any sum received by him from any of his employees on or before the due date, that is, the date by which the assessee (employer) is required to credit the employees' contribution to the employees' account in the relevant fund (including the Provident Fund), he will be entitled to deduct the said amount in computing his business income. But, Section 43B controls the allowability of deduction of payment specified in clauses (a) to (d) thereof and provides certain conditions subject to which alone the deductions may be permissible. Enunciating the point, it was held that deduction would be available only if the remittance to the fund is made within the due date fixed for making such remittance into the fund; in the case in hand, the Provident Fund. So much so, the question referred is to be answered in favour of the Revenue
Hitech (India) (P.) Ltd. v. Union of India [1997] 227 ITR 446/94 Taxman 454 (AP) (para 4) followed
two provisions were considered by the Hon'ble Andhra Pradesh High Court in Hitech (India) (P.) Ltd. v. Union of India [1997] 227 ITR 446/94 Taxman 454 in which it was held that a combined reading of clause (va) of Section 36(1) and Section 43B of the Income Tax Act makes it clear that if the assessee (employer) credited any sum received by him from any of his employees on or before the due date, that is, the date by which the assessee (employer) is required to credit the employees' contribution to the employees' account in the relevant fund (including the Provident Fund), he will be entitled to deduct the said amount in computing his business income. But, Section 43B controls the allowability of deduction of payment specified in clauses (a) to (d) thereof and provides certain conditions subject to which alone the deductions may be permissible. Enunciating the point, it was held that deduction would be available only if the remittance to the fund is made within the due date fixed for making such remittance into the fund; in the case in hand, the Provident Fund. So much so, the question referred is to be answered in favour of the Revenue
No comments:
Post a Comment