Section 40A(7) of the Income Tax Act

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.

Penalty under section 271(1)(c) for furnishing inaccurate particulars cannot be imposed for a mere disallowance, bona fide mistake, or inadvertent error, especially when relevant facts are disclosed in the tax audit report. The levy of penalty requires proof of intent to conceal income or furnish false particulars.

For income tax purposes, particularly under Section 22, the 'owner' is the person entitled to receive income in their own right, and formal registration of a sale deed is not mandatory. This 'real owner' principle also extends to claiming depreciation on capital assets, where the person bearing the risks and utilizing the asset is considered the owner.

An amendment clarifying the disallowance of employee contributions under sections 36(1)(va) and 43B is prospective. Therefore, before such amendment, employee contributions paid before the due date for filing the income tax return are deductible.

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.

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.

An employer can claim deduction for employee contributions to provident fund or ESI under Section 36(1)(va) if these sums are deposited on or before the due date for filing the income tax return under Section 139, extending the benefit of Section 43B to such payments.

The Commissioner of Income-tax must be satisfied that an assessment order is both erroneous and prejudicial to the interest of the Revenue to invoke revisionary powers under Section 263. If either condition is not met, a revision under Section 263 cannot be initiated.

Judges discover and find the correct law, not make it. A later Supreme Court decision clarifying a legal position operates retrospectively, even if an earlier decision was in effect for some time.

Decisions of the Supreme Court declaring the law are retrospective in nature unless specified otherwise. Judges discover and find the correct law, and later decisions clarifying legal positions are treated as having retrospective effect.