“statutory dues”

DisallowancesSection 43BSection 43B297 judgments

The decision most relied on for statutory dues is CIT v. Alom Extrusion Ltd. (390 ITR 306), cited in 274 judgments on BharatTax.

Leading authorities on statutory dues

CIT v. Alom Extrusion Ltd.

390 ITR 306 · 2009 · Supreme Court

274

citing judgments

The amendment to the second proviso of Section 43B, introduced by the Finance Act, 2003, is curative in nature and applies retrospectively. This means employee contributions to welfare funds like ESI and PF are deductible if paid before the due date for filing the income tax return, even if paid beyond the statutory due date.

CIT v. Hindustan Organic Chemicals Limited

366 ITR 1 · 2014 · High Court

206

citing judgments

Employees' contribution towards Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) is allowable as a deduction under Section 36(1)(va) read with Section 43B if deposited before the due date of filing the income tax return, even if deposited after the expiry of the statutory time period specified in the applicable fund's statute.

Kalpesh Synthetics (P.) Ltd. v. DCIT

137 Taxmann.com 475 · 2022 · ITAT

198

citing judgments

A deduction claimed under Section 36(1)(va) for employee contributions remitted after the statutory due date but before the return filing due date cannot be disallowed during intimation processing under Section 143(1) if the issue is debatable. Such a disallowance cannot be made automatically based solely on auditor's mention of actual vs. due dates in the tax audit report.

Ghanashyam Mishra And Sons. v. Edelweiss Asset Reconstruction

126 Taxmann.com 132 · 2021 · Supreme Court

192

citing judgments

Once a resolution plan is approved under Section 31(1) of the IBC, claims not included in the plan are extinguished and cannot be pursued. This applies to statutory dues owed to the government and other authorities.

Guj.) (iii) CIT vs. South India Corporation Ltd. (2000) 242 ITR 114 (Ker) (iv) CIT v. GTN Textiles Ltd.

269 ITR 285 · 2004 · High Court

176

citing judgments

Employee contributions towards ESI and PF are allowable as a deduction if paid by the due date for filing the income tax return, even if paid after the statutory due dates prescribed under the respective ESI/PF Acts.

Bharat Commerce Industries Ltd. v. CIT

230 ITR 733 · 1998 · Supreme Court

130

citing judgments

The Supreme Court holds that interest paid under Section 201(1A) of the Income-tax Act, for failure to deduct tax at source, is not an allowable business expenditure under Section 37(1) of the Act.

Lachmandas Mathura v. CIT

254 ITR 799 · 2002 · Supreme Court

119

citing judgments

Interest paid on delayed payment of statutory dues, such as sales tax, service tax, TDS, and GST, is compensatory in nature rather than penal. Consequently, such interest is an allowable deduction in computing business profits.

CIT v. Noble and Hewitt (I) P. Ltd.

305 ITR 324 · 2008 · High Court

109

citing judgments

Section 43B of the Income-tax Act does not apply to disallow an amount (such as statutory dues like service tax or GST) if it has not been debited to the Profit & Loss account and no deduction for it has been claimed by the assessee.

Judgments citing statutory dues

Softlayer Technologies India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 6(1)(2), Bangalore

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 265/BANG/2021[2016-17]Status: DisposedITAT Bangalore10 Oct 2022AY 2016-17

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Dr. Manjunath Karkihalli, CIT (DR)

Section 143(3)Section 92C

lower authorities, while computing the Net Cost Plus (‘NCP’) mark-up of the Appellant, erred in considering other non-operating expenses (viz. interest on statutory dues and bank charges) as operating in nature. [Ground of appeal no. 1 – First additional grounds of appeal filed 6 October 2021] 6. The lower

Raj Rayon Industries Ltd, Mumbai vs. PCIT, Mumbai

In the result, the appeal of the assessee is allowed

ITA 830/MUM/2022[2017-18]Status: DisposedITAT Mumbai02 Sept 2022AY 2017-18

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.830/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2017-18) Raj Rayon Industries Ltd बिधम/ Pcit-3 Survey No. 177/1/3 & 612, 6Th Floor, Aayakar Vs. 177/1/4, Village Surangi, Bhavan, Maharishi Karve Silvassa-396230 (Ut Of Road, Mumbai-400020. Dadra & Nagar Haveli & Daman & Diu)-396230. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacr7820E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Satish Mody Revenue By: Shri T. Sankar (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 25/07/2022 घोषणा की तारीख /Date Of Pronouncement: 02/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Principal Commissioner Of Income Tax-03 [Hereinafter Referred To As The “Pcit”], Mumbai Dated 03.03.2022 For Assessment Year 2017-18 Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”).

For Appellant: Shri Satish ModyFor Respondent: Shri T. Sankar (Sr. AR)

Section 143(3)Section 147Section 148Section 263

such, even without the 2019 amendment, the Central Government, any State Government or any local authority to whom a debt is owed, including the statutory dues, would be covered by the term ‘creditor’ and in any case, by the term ‘other stakeholders’ as provided in sub section (1) of Section ... therefore will be effective from the date on which I&B Code has come into effect; 102.3. Consequently, all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings

Rosy Blue (India) Pvt. Ltd., Mumbai vs. DCIT Cent. Cir. - 46, (Now DCIT Cent. Cir. 8(3)), Mumbai

In the result, the appeal filed for AY 2009-10 is also allowed

ITA 3675/MUM/2018[2006-07]Status: DisposedITAT Mumbai14 Jul 2022AY 2006-07

Bench: Shri Amit Shukla, Jm & Shri Gagan Goyal, Am आयकरअपीलसं./ I.T.A. No. 3675, 3676, 3677 & 3678/Mum/2018 (निर्धारणवर्ा / Assessment Years: 2006-07, 2007-08, 2008-09 & 2009-10)

For Appellant: Shri Nitesh Joshi & ShriFor Respondent: Shri R. M. Madhvi, Ld

Section 132Section 143(3)Section 153Section 153A

locate the following records confirming that the Contractors were duly registered with labour authorities and had complied with labour laws including payment of statutory dues such as PF and ESIC: Kamal Diamond; 1. Payroll Register for February 2006 2. Duly acknowledged letters intimating concerned authorities regarding fulfilment of compliances under

M/S. Mobily Infotech India Private Limited, Bangalore vs. Income Tax Officer, Ward-4(1)(3), Bangalore

In the result, the appeal by the assessee is allowed

ITA 313/BANG/2022[2017-18]Status: FixedITAT Bangalore07 Jul 2022AY 2017-18

Bench: Shri George George K. & Ms. Padmavathy Sassessment Year : 2016-17

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Sankarganesh K. Jt.CIT(DR)(ITAT), Bengaluru

Section 143(2)Section 143(3)Section 36(1)(iii)Section 40

protection of its assets and property from expropriation, coercive process or assertion of hostile title ; it may also comprehend payment of statutory dues and taxes imposed as a pre-condition to commence or for carrying on of a business; it may comprehend many other acts incidental to the carrying

M/S. Hical Infra Private Limited, Bangalore vs. Deputy Commissioner of Income Tax (OSD), Range- 1, Bangalore

In the result, the appeal by the assessee is allowed

ITA 313/BANG/2020[2016-17]Status: DisposedITAT Bangalore07 Jul 2022AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy Sassessment Year : 2016-17

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Sankarganesh K. Jt.CIT(DR)(ITAT), Bengaluru

Section 143(2)Section 143(3)Section 36(1)(iii)Section 40

Jsw Steel Limited, Mumbai vs. Addlcit, Bangalore

858/M/2011

ITA 858/BANG/2011[2007-08]Status: DisposedITAT Mumbai16 Mar 2022AY 2007-08

Bench: Shri Om Prakash Kant () & Shri Amarjit Singh () Assessment Year: 2007-08 Jsw Steel Limited, The Addl. Cit, Range 11, Jindal Mansion, 5A, Vs. Bangalore. Dr. G. Deshmukh Marg, Mumbai-400026. Pan No. Aaacj 4323 N Appellant Respondent Assessment Year: 2007-08 Dc. Cc.46, M/S Jsw Steel Ltd., R.No. 659, 6Th Floor, Aayakar Vs. Jindal Mansion, 5-A, Dr. G Bhavan, M.K. Road, Deshmukh Marg, Mumbai-20. Mumbai-400026. Pan No. Aaacj 4323 N Appellant Respondent Assessment Year: 2007-08 M/S Jsw Steel Ltd., Dcit, Central Circle 46, Jsw Centre, Bandra Kurla Vs. 6Th Flr., Aayakar Bhavan, M.K. Complex, Road, Mumbai-400051. Mumbai-400020. Pan No. Aaacj 4323 N Appellant Respondent

For Appellant: Mr. Danesh Bafna &For Respondent: Mr. Achal Sharma, CIT-DR

Section 14ASection 37(1)

protection of its assets and property from expropriation, coercive process or assumption of hostile title; it may also comprehend payment of statutory dues and taxes imposed as a precondition to commence or for the carrying on of a business; it may comprehend many other acts incidental to the carrying

Raj Oil Mills Ltd, Mumbai vs. DCIT 8(3), Mumbai

In the result, both these appeals of assessee dismissed

ITA 7410/MUM/2010[2008-09]Status: DisposedITAT Mumbai10 Mar 2022AY 2008-09

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2008-09

For Appellant: NoneFor Respondent: Mr. T. Shankar, CIT-DR

Section 221Section 69C

NCALT in order dated 20/03/2019 upheld the order of the adjudicating authority observing as under: “33. In the other appeal, the statutory dues have been treated as ‘Operational Debt’ and equated them with similarly situated ‘Operational Creditors’, we find no reason to interfere with the impugned order(s) challenged

Perfect Thread Mills Ltd, Mumbai vs. ITO WD 8(2)(4), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 349/MUM/2011[2007-08]Status: DisposedITAT Mumbai24 Feb 2022AY 2007-08

Bench: S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble&

For Appellant: Department by Shri Mehul Jain

their powers for recovery of their loan. Similarly, legal actions were initiated by Provident Fund Authorities and Employees State Insurance Authorities for recovery of statutory dues. 11. The Central Government issued a notification u/s.3A of the National Highways Act, 1956 declaring its intention to acquire 12,600 sq.mtr. of company

M/S.L.G Petrochemicals Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal filed by the assessee is dismissed

ITA 1954/BANG/2016[2008-09]Status: DisposedITAT Bangalore21 Feb 2022AY 2008-09

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Smt.Pratibha, AdvocateFor Respondent: Smt.Vandana Sagar, CIT-DR

Section 115JSection 143(1)Section 143(2)Section 438Section 43B

nothing on record nor in the lease agreement entered between the assessee and MPCL which suggest that the assessee shall be liable for the statutory dues of import of turbine generator. The assessee had claimed this amount as deduction u/s 43B of the I.T.Act. Section 43B of 6 M/s.I.G.Petrochemicals Limited

Anheuser Busch Inbev India Ltd., Mumbai vs. Pr. CIT-Circle-1, Mumbai

In the result, appeals filed by the assessee are allowed

ITA 942/MUM/2021[2014-15]Status: DisposedITAT Mumbai28 Jan 2022AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Rajan VoraFor Respondent: Ms. Shailja Rai

Section 143(3)Section 263Section 37Section 37(1)

protection of its assets and property from expropriation, coercive process or assertion of hostile title; it may also comprehend payment of statutory dues and taxes imposed as a pre-condition to commence or for carrying on of a business; it may comprehend many other acts incidental to the carrying

Anheuser Busch Inbev India Ltd., Mumbai vs. Pr CIT, Circle-1, Mumbai

In the result, appeals filed by the assessee are allowed

ITA 941/MUM/2021[2013-14]Status: DisposedITAT Mumbai28 Jan 2022AY 2013-14

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Rajan VoraFor Respondent: Ms. Shailja Rai

Section 143(3)Section 263Section 37Section 37(1)

protection of its assets and property from expropriation, coercive process or assertion of hostile title; it may also comprehend payment of statutory dues and taxes imposed as a pre-condition to commence or for carrying on of a business; it may comprehend many other acts incidental to the carrying

Delhi Auto and General Finance Pvt. Ltd., New Delhi vs. DCIT, Circle- 7(1), New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 3555/DEL/2018[2013-14]Status: DisposedITAT Delhi23 Dec 2021AY 2013-14

Bench: Hon’Ble, Shri G.S. Pannu & Shri Amit Shukla

For Appellant: Shri Aloke Periwal, CAFor Respondent: Shri Harpal Singh, Senior DR

Section 143(3)

considered to be business expenditure in case of assessee that can be allowed and accordingly, he held that certain expenses, i.e. paying of statutory dues, legal & professional charges, audit fee and salary of some employees, and accordingly he held that part of the amount should be allowed. Accordingly

Luthra & Luthra Chartered Accountants, New Delhi vs. ACIT, Circle-63(1), New Delhi

In the result, the appeal filed by the assessee is partly

ITA 3945/DEL/2018[2013-14]Status: DisposedITAT Delhi09 Dec 2021AY 2013-14

Bench: Sh. Aakash Deep Jain & Sh. N. K. Billaiya(Through Video Conferencing) Assessment Year: 2013-14 Luthra & Luthra Chartered Acit Accountants A-16/9, Vasant Vs Circle – 63 (1) Vihar, New Delhi New Delhi Pan No. Aaafl1231A (Appellant) (Respondent)

Section 36Section 40Section 43B

erred in law and facts in confirming the order of the Ld. AO in respect of disallowance of amount of statutory dues payable as on the last day of the previous year and paid within prescribed due dates on the ground that the appellant is following cash system of accounting

Samal Infra Projects P.Ltd, Gr.Noida vs. ITO, Ward-3(3), Noida

The appeal of the assessee is allowed

ITA 3239/DEL/2018[2014-15]Status: DisposedITAT Delhi01 Nov 2021AY 2014-15

Bench: Ms Suchitra Kamble & Dr. B. R. R. Kumar(Through Video Conferencing)

Section 143Section 271(1)(c)Section 274Section 3Section 43B

income showing taxable income of Rs. 11,95,010/- on November 19 2014. The Assessing Officer observed that the assessee has not paid statutory dues of service tax Rs 41,73,159/- till the due date of filing the return thereby attracting disallowance under Section 43B of the Act. However ... payment of statutory dues was pointed out at Sr. no. 26 of Form 3CD of Tax audit report as pointed out by the Assessee. Further an ad-hoc disallowance of Rs 10,000/- was also made to cover up the possible leakage in the books of accounts. Pursuant to proceedings

Rukmini Polytubes Pvt Ltd, New Delhi vs. DCIT CPC, Bangalore

In the result, appeal of the Assessee is partly allowed for statistical purposes

ITA 1855/DEL/2020[2018-19]Status: DisposedITAT Delhi13 Oct 2021AY 2018-19

Bench: Shri R.K. Panda

For Appellant: Shri Suresh Kumar Gupta, CAFor Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR

Section 139(1)Section 143Section 143(1)Section 43Section 43B

ignoring the fact that the above figure has been reported under wrong column of Form 3CD and the above statutory dues were duly paid before the date of filling of return of income prescribed u/s 139(1) of IT Act. 2. The appellant craves leave to add, delete, modify / amend

Kansi Technovation Pvt Ltd, Gurgaon vs. ITO Ward - 2(3), Gurgaon

In the result, the appeal of the assessee is allowed

ITA 1492/DEL/2020[2016-17]Status: DisposedITAT Delhi11 Oct 2021AY 2016-17

Bench: Shri R.K. Panda[Assessment Year: 2016-17]

Section 142(1)Section 143(2)Section 250

payable at Rs.24,00,000/- in absence of confirmation/detail. 7. Proportionate disallowance of other expenses in absence of corresponding payment through bank. 8. All statutory dues which was shown payable in absence of any evidence of payment of same within time limit. 9. Any other addition, which is not admissible

Addlcit, New Delhi vs. M/S Mmtc Ltd., New Delhi

In the result, appeal filed by the assessee is partly allowed

ITA 5166/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing) M/S. Mmtc Limited, Vs. Addl. Cit, Core: 1, Scope Complex – 7, Special Range : 6, Industrial Area, Lodhi Road, New Delhi. New Delhi – 110 003. Pan: Aaacm1433E & Addl. Cit, Vs. M/S. Mmtc Limited, Special Range : 6, Core: 1, Scope Complex – New Delhi. 7, Industrial Area, Lodhi Road, New Delhi – 110 003. Pan: Aaacm1433E (Appellants) (Respondents)

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas

Section 14ASection 250Section 37(1)Section 43BSection 80G

Ground No. 8, the appellant is eligible to deduction of Rs.83,755/- considering provisions of section 43B of the Act since the payment of statutory dues was made before the due date of filing of return of income for which the evidences were furnished before the appellate authority ... appellant is eligible to deduction of the above sum considering the provisions of Section 43B of the income tax act since the payment of statutory dues was made before the due date of filing of the return of income for which the evidences were furnished before the appellate authority

Mmtc Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal filed by the assessee is partly allowed

ITA 5147/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas

Section 14ASection 250Section 37(1)Section 43BSection 80G

ACIT, CC- 30, New Delhi vs. Vanshi Farms Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4056/DEL/2017[2011-12]Status: DisposedITAT Delhi15 Sept 2021AY 2011-12

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Ms. Shushma Singh, CIT-DRFor Respondent: Shri Ajay Wadhwa, Adv

Section 132(1)Section 139(1)Section 143(1)Section 153ASection 153CSection 68

filing various statutory returns of these companies and signed blank cheque books of its group companies, were lying for paying fees, taxes and statutory dues etc. Therefore, mere availability of certain documents of promoter group companies in the premises of the appellant, does not prove that these documents were used ... companies, including one of the investor company M/s Vanshi Farms Private Limited, as Annexure A-21, were lying for the purpose of payments of statutory dues, fees, taxes, etc. Therefore, it is submitted that these signed blank cheque books, have no bearing / determination on transactions of alleged amount received

ACIT, CC- 30, New Delhi vs. Ankit Nivesh & Management Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4054/DEL/2017[2011-12]Status: DisposedITAT Delhi15 Sept 2021AY 2011-12

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Ms. Shushma Singh, CIT-DRFor Respondent: Shri Ajay Wadhwa, Adv

Section 132Section 139(1)Section 143(1)Section 153ASection 153CSection 68

filing various statutory returns of these companies and signed blank cheque books of its group companies, were lying for paying fees, taxes and statutory dues etc. Therefore, mere availability of certain documents of promoter group companies in the premises of the appellant, does not prove that these documents were used ... including one of the investor company M/s Ankit Nivesh & Management Private Limited, as annexure A-22, were lying for the purpose of payments of statutory dues, fees, taxes, etc. Therefore, it is submitted that these signed blank cheque books, have no bearing / determination on transactions of alleged amount received