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“actual payment basis”

DisallowancesSection 43BSection 43B250 judgments

The decision most relied on for actual payment basis is CIT v. AIMIL Ltd. (321 ITR 508), cited in 1,629 judgments on BharatTax.

Leading authorities on actual payment basis

CIT v. AIMIL Ltd.
321 ITR 508 · 2010 · High Court
1,629
citing judgments

Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

Calcutta Co. Ltd. v. CIT
37 ITR 1 · 1959 · Supreme Court
341
citing judgments

When following the mercantile system of accounting, provisions for liabilities made on a scientific and rational basis are allowable as deductions, even if their actual quantification and discharge are deferred to a future date.

Commissioner of Income-Tax, Udaipur v. Udaipur Dugdh Utpadak Sahakari Sandh Ltd.
35 Taxmann.com 616 · 2013 · High Court
304
citing judgments

No disallowance can be made under Section 36(1)(va) or Section 43B for delayed payment of employee's contributions to ESI or PF if these amounts are deposited by the assessee on or before the due date for filing the return of income under Section 139(1). This aligns the treatment of employee contributions with employer contributions for allowability.

Commissioner of Income-Tax v. Rai Agro Industries Ltd.
334 ITR 122 · 2011 · High Court
163
citing judgments

Section 43B of the Income-tax Act applies to both employer and employee contributions to welfare funds, allowing deductions for these contributions only upon actual payment.

Union of India v. Exide Industries
425 ITR 1 · 2020 · Supreme Court
146
citing judgments

The provision for leave encashment is allowable as a deduction only on an actual payment basis under Section 43B(f) of the Income Tax Act, 1961. The Supreme Court upheld the constitutional validity of Section 43B(f).

CIT v. M/s Mark Auto Industries Ltd.
358 ITR 43 · 2013 · High Court
105
citing judgments

The Punjab & Haryana High Court held that employees' contributions to provident fund (PF) and Employees' State Insurance (ESI), deposited after the due date under the respective special Acts but before the due date for filing the income tax return, are allowable as a deduction under Section 36(1)(va) read with Section 43B of the Income-tax Act.

Pradeep Amrutlal Runwal v. Tax Recovery Officer
47 Taxmann.com 293 · 2014 · ITAT
46
citing judgments

Additions to income cannot be made solely on the basis of loose papers or notings found during a search in the premises of a third party, especially when there is no corroborative evidence to suggest that the assessee actually received the amounts or made payments.

CIT v. KP Varghese
131 ITR 574 · Supreme Court
24
citing judgments

An addition to income cannot be made on the basis of deeming fiction without evidence that the assessee actually paid more than what was declared in the registered deed. The Assessing Officer bears the burden of proving the assessee's liability to tax.

Judgments citing actual payment basis

Bajaj Clothings Private Limited, Bangalore vs. The DCIT-1(1)(1), Bangalore

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

ITA 760/BANG/2023[2017-18]Status: DisposedITAT Bangalore08 May 2024AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S.N. Agarwal, A.RFor Respondent: Shri Narendra Kumar Naik, D.R
Section 143(2)Section 143(3)Section 250Section 68

facts of the case and submissions made before him/ her even when CST being in the nature of tax is allowable on actual payment basis under section 43B of the Income-Tax Act, 1961 5. That on the facts and in the circumstances of the case

Bajaj Clothings Private Limited, Bangalore vs. The DCIT-1(1)(1), Bangalore

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

ITA 759/BANG/2023[2013-14]Status: DisposedITAT Bangalore08 May 2024AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S.N. Agarwal, A.RFor Respondent: Shri Narendra Kumar Naik, D.R
Section 143(2)Section 143(3)Section 250Section 68

facts of the case and submissions made before him/ her even when CST being in the nature of tax is allowable on actual payment basis under section 43B of the Income-Tax Act, 1961 5. That on the facts and in the circumstances of the case

M/S Barnala Builders and Consultant, Zirakpur vs. DCIT/ACIT (Cen)-1, Chandigarh

In the result, the appeal of the assessee is dismissed

ITA 274/CHANDI/2022[2018-19]Status: DisposedITAT Chandigarh07 May 2024AY 2018-19

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Parikshit Aggarwal, C.AFor Respondent: Smt. Amanpreet Kaur, Sr. DR
Section 139(1)Section 143(1)Section 143(1)(a)Section 36(1)(va)

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

Goribi Abdul Karim Nadaf, Pune vs. Commissioner Income Tax (Appeals), Addl JCIT (A) -1 Ahmedabad, Ahmedabad

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

ITA 517/PUN/2024[2019-20]Status: DisposedITAT Pune30 Apr 2024AY 2019-20

Bench: Shri Inturi Rama Rao & Shri Vinay Bhamore

For Appellant: NoneFor Respondent: Shri Manoj Tripathi
Section 139(1)Section 143(1)Section 2Section 2(24)Section 36(1)(va)Section 43B

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

Goribi Abdul Karim Nadaf, Pune vs. Commissioner of Income Tax (Appeals), Addl JCIT (A) 1 - Ahmedabad, Addl/JCIT (A) Ahmedabad

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

ITA 516/PUN/2024[2018-19]Status: DisposedITAT Pune30 Apr 2024AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Vinay Bhamore

For Appellant: NoneFor Respondent: Shri Manoj Tripathi
Section 139(1)Section 143(1)Section 2Section 2(24)Section 36(1)(va)Section 43B

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

Shri Ravi Kumar Shyam Sunder Rai, Kalyan vs. DCIT, CIT-42(3)(1), Mumbai

In the result, this ground of appeal raised by the assessee is allowed for statistical purposes

ITA 3736/MUM/2023[2017-18]Status: DisposedITAT Mumbai25 Apr 2024AY 2017-18

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Shri Aditya RamchandranFor Respondent: Smt. Mahita Nair – (Sr. DR)
Section 44ASection 68

owner took the benefit and now the assessee is claiming the same, because deduction under this section can be allowed only on actual payment basis. Fact of actual payment by the assessee is not under challenge and we do not see any restriction in proviso to section

Addl CIT 8(1), Mumbai vs. M/S. Sanofi India Limited (Formerly Known As M/S. Aventis Pharma Ltd), Mumbai

In the result, the C.O. of the assessee for AY 2007-08 is partly allowed

ITA 6698/MUM/2011[2007-08]Status: DisposedITAT Mumbai23 Feb 2024AY 2007-08

Bench: Shri Vikas Awasthy, Jm & Ms Padmavathy S, Am

For Respondent: Shri Ajay Chandra (CIT-DR) &
Section 32Section 32(1)

Sanofi India Limited claiming on the basis of provisions created. Since the assessee has started adopting the expenses on actual payment basis, it is the duty of the assessee to declare the provisions created until previous assessment years and the same has to be reversed in the current assessment year ... been a change in the manner in which the assessee has been claiming the deduction towards leave encashment from provision basis to actual payment basis pursuant to amendment in section 43B of the Act. It is also not disputed that the amount if already was allowed as a deduction

Addl CIT RG 8(1), Mumbai vs. M/S. Sanofi India Limited (Formerly Known As M/S. Aventis Pharma Ltd), Mumbai

In the result, the C.O. of the assessee for AY 2007-08 is partly allowed

ITA 7712/MUM/2010[2006-07]Status: DisposedITAT Mumbai23 Feb 2024AY 2006-07

Bench: Shri Vikas Awasthy, Jm & Ms Padmavathy S, Am

For Respondent: Shri Ajay Chandra (CIT-DR) &
Section 32Section 32(1)

Sanofi India Limited claiming on the basis of provisions created. Since the assessee has started adopting the expenses on actual payment basis, it is the duty of the assessee to declare the provisions created until previous assessment years and the same has to be reversed in the current assessment year ... been a change in the manner in which the assessee has been claiming the deduction towards leave encashment from provision basis to actual payment basis pursuant to amendment in section 43B of the Act. It is also not disputed that the amount if already was allowed as a deduction

Sanofi India Ltd Formerly Known As Aventis Pharma Ltd, Mumbai vs. Addl CIT RG 8(1), Mumbai

In the result, the C.O. of the assessee for AY 2007-08 is partly allowed

ITA 6626/MUM/2009[2005-06]Status: DisposedITAT Mumbai23 Feb 2024AY 2005-06

Bench: Shri Vikas Awasthy, Jm & Ms Padmavathy S, Am

For Respondent: Shri Ajay Chandra (CIT-DR) &
Section 32Section 32(1)

Sanofi India Limited claiming on the basis of provisions created. Since the assessee has started adopting the expenses on actual payment basis, it is the duty of the assessee to declare the provisions created until previous assessment years and the same has to be reversed in the current assessment year ... been a change in the manner in which the assessee has been claiming the deduction towards leave encashment from provision basis to actual payment basis pursuant to amendment in section 43B of the Act. It is also not disputed that the amount if already was allowed as a deduction

Arvinder Paul Jit Singh Gill, Chandigarh vs. ITO, Ward 2(1), Chandigarh

In the result, the appeal of the assessee is dismissed

ITA 325/CHANDI/2022[2019-20]Status: DisposedITAT Chandigarh21 Feb 2024AY 2019-20

Bench: Shri A.D. Jain & Shri Vikram Singh Yadav

For Appellant: Shri Nalin Nohria & Shri B.K.Nohria,CAsFor Respondent: Smt. Amanpreet Kaur, Sr.DR
Section 143(1)Section 143(1)(a)Section 2(24)(x)Section 36(1)(va)

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

National Securities Depository Limited, Mumbai vs. PCIT-8, Mumbai

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

ITA 1918/MUM/2023[2018-19]Status: DisposedITAT Mumbai07 Feb 2024AY 2018-19

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blenational Securities Depository Limited V. Pr.Cit-8 4Th Floor, A-Wing Room No. 611, 6Th Floor Trade World, Kamala Mills Compound Aayakar Bhavan, M.K. Road Senapati Bapat Marg, Lower Parel Mumbai - 400020 Mumbai - 400013 Pan: Aadcn9802F (Appellant) (Respondent) Assessee Represented By : Shri Percy Pardiwala & Shri Jeet Kamdae Department Represented By : Shri S. Srinivasu

Section 143(3)Section 14ASection 263Section 43B

that the amount of ₹.438.56 lakhs is only a provision, the expenses made or likely to be made should have been claimed on actual payment basis u/s. 43B of the Act. He rejected the contention of the assessee that provision made by the assessee is not covered within the prescribed ... section 43B of the Act. He submitted that provisions of section 43B is very specific on certain deductions to be claimed only on actual payment basis and he submitted that those are clearly specified in the section itself from clause (a) to (g) of the section

Dr.Raveendra M.Madraki, Bijapur vs. Income Tax Officer Ward-1, Bagalkot

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

ITA 670/BANG/2019[2014-15]Status: DisposedITAT Bangalore23 Jan 2024AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2014-15

For Appellant: Shri Ashok A. Kulkarni, A.RFor Respondent: Shri Subramanian S., D.R

relating to the previous year 2013-14 relevant to the assessment year 2014-15 or on cash basis in any assessment year on actual payment basis. If the tenant has claimed this as an expenditure as discussed above, same to be considered as income of the assessee in this assessment

M/S. the Kothari Wheels, Pune vs. DCIT, CPC, Bangalore, Banglore

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

ITA 1420/PUN/2023[2018-19]Status: DisposedITAT Pune18 Jan 2024AY 2018-19

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)

For Respondent: Shri Ajay Kumar Kesari
Section 139(1)Section 143(1)Section 2Section 2(24)Section 2(24)(x)Section 36(1)(va)Section 43B

payment is furnished by the assessee along with such return.’ The 4 main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

Sumangal Glass Pvt. Ltd., Bhachau vs. DCIT, Circle-4(1)(1), Ahmedabad

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

ITA 2636/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad12 Jan 2024AY 2012-13

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकरअपीलसं./Ita No. 2636/Ahd/2017 धििाधरणवरध/Asstt. Year: 2012-2013 Sumangal Glass Pvt. Ltd., D.C.I.T, Plot No.617/1-618-620, Vs. Circle-4(1)(1), Nh-8A,Po.Samakhiyari Ahmedabad (Piprapati), Bhachau Taluka, Samakhiyari-370150. Pan: Aaics6992G

For Appellant: Shri Manish J Shah, with Shri Rushin Patel, ARsFor Respondent: Shri Ashok Kumar Suthar, Sr. DR
Section 194CSection 36(1)(va)Section 40

Government Treasury in the year under consideration, therefore, the same should be allowed under section 40(a)(ia) of the Act, on actual payment basis. However, the AO during the assessment proceedings sought certain details to justify the deduction claim by the assessee but the necessary details were not furnished ... payment to the Government treasury thereof. This establishes that the law is clear that such expense will be allowed as deduction on actual payment basis. 10.1 It is not out of place to mention that the benefit of the expense disallowed on account of non-deduction of TDS should

M/S. Jaika Automobiles Pvt. Ltd., Nagpur vs. Deputy Commiissioner of Income Tax, CPC, Bangalore

In the result, the appeal filed by the assessee in ITA

ITA 267/NAG/2022[2018-2019]Status: DisposedITAT Nagpur19 Dec 2023AY 2018-2019

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.193/Nag/2022 िनधा"रण वष" / Assessment Year : 2017-18 M/S. Jaika Automobiles & Vs. Acit, Circle-2, Nagpur. Finance Pvt. Ltd., Jaika Building, Commercial Road, Civil Lines, Nagpur- 440001. Pan : Aaacj3178K Appellant Respondent आयकर अपील सं. / Ita No.267/Nag/2022 िनधा"रण वष" / Assessment Year : 2018-19 M/S. Jaika Automobiles Pvt. Vs. Dcit, Cpc, Bangalore. Ltd., Jaika Building, Commercial Road, Civil Lines, Nagpur- 440001. Pan : Aaacj4462A Appellant Respondent Assessee By : Shri K. P. Dewani Revenue By : Shri Vijay Kumar Subrahmanyan Date Of Hearing : 18.12.2023 Date Of Pronouncement : 19.12.2023 आदेश / Order Per Inturi Rama Rao, Am: These Are The Appeals Filed By The Assessee Directed Against The Separate Orders Of The National Faceless Appeal Centre, Delhi [‘Nfac’) Dated 15.03.2022 & 23.12.2021 For The Assessment Years 2017-18 & 2018-19 Respectively. 2. Since The Identical Facts & Common Issues Are Involved In Both The Above Captioned Appeals Of The Assessee, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal Of The Assessee In Ita No.267/Nag/2022 For The Assessment Year 2018-19 Are Stated Herein.

For Appellant: Shri K. P. DewaniFor Respondent: Shri Vijay Kumar Subrahmanyan
Section 139(1)Section 143(1)Section 2Section 2(24)Section 36(1)(va)Section 43B

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

M/S. Jaika Automobiles and Finance Pvt. Ltd., Nagpur vs. Assistant Commissioner of Income Tax, Circle-2, Nagpur

In the result, the appeal filed by the assessee in ITA

ITA 193/NAG/2022[2017-18]Status: DisposedITAT Nagpur19 Dec 2023AY 2017-18

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.193/Nag/2022 िनधा"रण वष" / Assessment Year : 2017-18 M/S. Jaika Automobiles & Vs. Acit, Circle-2, Nagpur. Finance Pvt. Ltd., Jaika Building, Commercial Road, Civil Lines, Nagpur- 440001. Pan : Aaacj3178K Appellant Respondent आयकर अपील सं. / Ita No.267/Nag/2022 िनधा"रण वष" / Assessment Year : 2018-19 M/S. Jaika Automobiles Pvt. Vs. Dcit, Cpc, Bangalore. Ltd., Jaika Building, Commercial Road, Civil Lines, Nagpur- 440001. Pan : Aaacj4462A Appellant Respondent Assessee By : Shri K. P. Dewani Revenue By : Shri Vijay Kumar Subrahmanyan Date Of Hearing : 18.12.2023 Date Of Pronouncement : 19.12.2023 आदेश / Order Per Inturi Rama Rao, Am: These Are The Appeals Filed By The Assessee Directed Against The Separate Orders Of The National Faceless Appeal Centre, Delhi [‘Nfac’) Dated 15.03.2022 & 23.12.2021 For The Assessment Years 2017-18 & 2018-19 Respectively. 2. Since The Identical Facts & Common Issues Are Involved In Both The Above Captioned Appeals Of The Assessee, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal Of The Assessee In Ita No.267/Nag/2022 For The Assessment Year 2018-19 Are Stated Herein.

For Appellant: Shri K. P. DewaniFor Respondent: Shri Vijay Kumar Subrahmanyan
Section 139(1)Section 143(1)Section 2Section 2(24)Section 36(1)(va)Section 43B

such payment is furnished by the assessee along with such return.’ The main provision of section 43B, providing for the deduction only on actual payment basis, has been relaxed by the proviso so as to enable the deduction even if the payment is made before the due date of furnishing

M/S Ashok Engineering Works, Korba vs. Deputy Commissioner of Income Tax, Circle-1(1), Bilaspur

In the result, appeal of the assessee in ITA No

ITA 54/RPR/2022[2018-19]Status: DisposedITAT Raipur24 Nov 2023AY 2018-19

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos. 53 & 54/Rpr/2022 "नधा"रण वष" / Assessment Years : 2017-18 & 2018-19 M/S. Ashoka Engineering Works, Lig-51, Sada Colony, Jamnipali, Korba (C.G.)-495 450 Pan : Aaafw5581G .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle-1(1), Bilaspur (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, AdvocateFor Respondent: Shri Satya Prakash Sharma, Sr. DR
Section 143(1)Section 154Section 36(1)(va)

return of income under Section 139(1) of the Act, the assessee(s) would be entitled to deduction under Section 43-B on actual payment basis and such deduction would be admissible for the accounting year. This proviso, however, did not apply to the contribution made by the assessee

M/S Ashoka Engineering Works, Korba vs. Deputy Commissioner of Income Tax, Circle-1(1), Bilaspur

In the result, appeal of the assessee in ITA No

ITA 53/RPR/2022[2017-18]Status: DisposedITAT Raipur24 Nov 2023AY 2017-18

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos. 53 & 54/Rpr/2022 "नधा"रण वष" / Assessment Years : 2017-18 & 2018-19 M/S. Ashoka Engineering Works, Lig-51, Sada Colony, Jamnipali, Korba (C.G.)-495 450 Pan : Aaafw5581G .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle-1(1), Bilaspur (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, AdvocateFor Respondent: Shri Satya Prakash Sharma, Sr. DR
Section 143(1)Section 154Section 36(1)(va)

return of income under Section 139(1) of the Act, the assessee(s) would be entitled to deduction under Section 43-B on actual payment basis and such deduction would be admissible for the accounting year. This proviso, however, did not apply to the contribution made by the assessee

M/S Sanofi India Ltd (Formerly Known As Aventis Pharma Ltd, Mumbai vs. The ACIT RG 8(1), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1606/MUM/2007[2003-2004]Status: DisposedITAT Mumbai31 Oct 2023AY 2003-2004

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 271(1)(c)

paid to him, is the accrued amount of leave salary through out the period of his service. Therefore, by claiming leave encashment on actual payment basis, the assessee is claiming a part of the leave encashment which was also claimed in the past based on the actuarial valuation report ... carefully examined the issue and I find that there cannot be any dispute on the fact that when leave encashment is claimed on actual payment basis it also includes leave encashment claimed in the past based on the actuarial valuation report. In the absence of any other method of computing

ACIT- 3(1)(1), Mumbai vs. Mm/S Sanofi India Limited (Formerly Known As Aventis Pharma Ltd)., Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1302/MUM/2007[2003-2004]Status: DisposedITAT Mumbai31 Oct 2023AY 2003-2004

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 271(1)(c)

paid to him, is the accrued amount of leave salary through out the period of his service. Therefore, by claiming leave encashment on actual payment basis, the assessee is claiming a part of the leave encashment which was also claimed in the past based on the actuarial valuation report ... carefully examined the issue and I find that there cannot be any dispute on the fact that when leave encashment is claimed on actual payment basis it also includes leave encashment claimed in the past based on the actuarial valuation report. In the absence of any other method of computing