“Section 2(7)(a)”
The decision most relied on for Section 2(7)(a) is CIT v. Gujarat State Road Transport Corporation (366 ITR 170), cited in 1,158 judgments on BharatTax.
Leading authorities on Section 2(7)(a)
Employees' contributions to welfare funds, such as provident fund, are not allowable as a deduction under section 36(1)(va) if deposited beyond the due date prescribed under the respective welfare statutes, even by a single day. Such delayed deposits are not cured even if made before the income-tax return filing due date.
The requirement to file an audit report along with the income tax return, as specified in provisions like Section 80J(6A) or 80-IA(7), is directory and not mandatory. Substantial compliance is achieved if the audit report is submitted at any time before the assessment is framed or completed, and benefits should not be denied merely due to a delay in furnishing it.
The validity of Section 234E of the Income Tax Act, 1961, inserted by the Finance Act, 2012, is examined by the court.
The requirement to file an audit report along with the return of income under section 80-IA(7) and similar provisions is directory, not mandatory. Such a report suffices if filed at any time before the assessment is framed.
The requirement to file an audit report along with the return of income for claiming specified deductions, such as under Section 80J or 80-IA, is directory and not mandatory. Such an audit report can be filed at any time before the assessment is framed or completed under Section 143(1).
The requirement to furnish an auditor's report (e.g., under Section 80J(6A), 80-IA(7), or Form 10B/10IC) along with the return of income is directory, not mandatory. Such a report can be filed at a later stage, provided it is submitted before the completion of the assessment proceedings.
A statute prescribing a procedure using negative language (e.g., 'in no other manner') imposes absolute requirements, and failure to comply will invalidate the entire proceeding.
The beneficial provisions of Section 43B do not apply to sums covered by Section 36(1)(va), which are employee contributions to welfare funds. The scope of Section 43B and Section 36(1)(va) are distinct, meaning belated payment of employee contributions is not deductible under Section 43B, and only Section 36(1)(va) read with Section 2(24)(x) governs their deductibility.
