DHALL ENTERPRISES & ENGINEERS PVT. LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD

PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal by the Assessee is directed against the order of the Ld. CIT(A)-1, Ahmedabad dated 24.08.2016 pertaining to A.Y. 2013-14 and following grounds have been taken:.

ITA No. 2529/Ahd/2016 2 . A.Y. 2013-14 1. That on facts and in law, the ld. CIT(A) has grievously erred in confirming the addition of Rs. 3,81,252/- made u/s. 36(1)(va) r.w.s. 2(24)(x) of the Act.

ii) As such, vide Point No. 8 of order sheet entry dated 07/07/2015, the assessee was required to explain as to why the amount of Rs. 3,81,252/- should not be treated as income u/s. 2(24)(x) of the Income Tax. Act and made addition of Rs. 3,81,252/-.

ITA No. 2529/Ahd/2016 3 . A.Y. 2013-14 4. We have gone through the relevant record in the impugned order. This case is squarely covered against the appellant by the decision of the Hon’ble Gujarat High Court in the case of Gujarat State Road Transport Corporation 366 ITR 170 wherein it is held as under: "Section 43B, read with section 36(1)(va) of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed on actual payment (Employees contribution) - Whether where an employer has not credited sum received by it as employees' contribution to employees' account in relevant fund on or before due date as prescribed in Explanation to section 36(1)(va), assessee shall not be entitled to deduction of such amount though he deposits same before due date prescribed under section 43B i.e., prior to filing of return under section 139(1) -Held, yes - Assessee State transport corporation collected a sum being provident fund contribution from its employees - However, it had deposited lesser sum in provident fund account - Assessing Officer disallowed same under section 43B -However, Commissioner (Appeals) deleted disallowance on ground that employees contribution was deposited before filing return - Whether since assessee had not deposited said contribution in respective fund account on date as prescribed in Explanation to section 36(1)(va), disallowance made by Assessing Officer was just and proper - Held, yes [Para 8] [In favour of revenue]”