CIT vs. STEEL AUTHORITY OF INDIA LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI . 29.04.2011 . Present: Ms. Suruchii Aggarwal, counsel for the appellant. . + ITA No. 692/2011 . Two additions made by the Assessing Officer had been deleted by the ITAT and against the order of the ITAT, the present appeal is preferred by the appellant. These additions are: (1) The respondent/assessee had paid Provident Fund dues to the extent of `1558.31 lacs after the stipulated date but before the date of filing of the return. These were not claimed in the original return filed by the assessee. The assessee did not revise its return, as permissible under the law, however, claim was made by way of an application subsequently filed before the Assessing Officer during assessment proceedings. The expenses were disallowed on this ground. (2) The assessee also made claim of Provident Fund dues of `25.03 lacs on the basis of amendments (particularly Second Proviso) under Section 43B of the Income Tax Act, which was again disallowed by the Assessing Officer. Insofar as, first disallowance is concerned, it is not in dispute that under the law, such a claim towards Provident Fund dues even when the premiums are made after the due date but before filing of the return is allowable as business expenditure and cannot be rejected in view of the provision under . . Section 43B of the Income Tax Act. The only irregularity on the part of the assessee was that it did not make this claim initially in the revised return filed by means of application. Having regard to the fact that the respondent/assessee is the Government of India Undertaking and for the year in question it had shown loss of `153768.75 crores, we are of the opinion that the Department should not be allowed to raise this technicality when the claim is admissible under the law. We make it clear that it is because of the aforesaid reasons and, particularly, that the respondent/assessee is the Government of India Undertaking, we are undertaking this course of action when giving any opinion in question of law. Notice to the respondent limited to second Issue, returnable on 23rd May, 2011. Notice shall indicate that the appeal would be finally heard and disposed of on the next date. . . A.K. SIKRI, J. . . . . APRIL 29, 2011 M.L. MEHTA, J. KA #35