Calcutta High Court has held that if the payment towards Employees' contribution is made before due date of filing of return the same is allowed as per amended provision of sec-43B of the Income Tax Act, 1961

The issue involves as to whether the amendment to the second proviso to the Sec 43(B) of the Income Tax Act, as introduced by Finance Act, 2003, was curative in nature and is required to be applied retrospectively with effect from 1st April, 1988 or not. Held that, the deletion of the amount on account Employees' Contribution beyond due date was deductible by invoking the aforesaid amended provisions of Section 43B of the Act.

IN THE HIGH COURT AT CALCUTTA

Special Jurisdiction

[Income Tax]

ORIGINAL SIDE

COMMISSIONER OF INCOME TAX, CIRCLE-I, KOLKATA 

Vs.

M/S. VIJAY SHREE LIMITED

For Appellant : Mr. R. Sinha, Advocate 

BEFORE:

The Hon'ble JUSTICE BHATTACHARYA

The Hon'ble JUSTICE DR. SAMBUDDHA CHAKRABARTI 

Date : 6th September, 2011.

This appeal is at the instance of the Revenue and is directed against an order dated 28th April, 2011 passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata in ITA No.1091/Kol/2010 relating to assessment year 2006-07 by which the Tribunal dismissed the appeal preferred by the Revenue against the order of CIT (A). 

The only issue involved in this appeal is as to whether the deletion of the addition by the Assessing Officer on account of Employees ' Contribution to ESI and PF by invoking the provision of Section 36(1)(va) read with Section 2(24)(x) of the Act was correct or not.

It appears that the Tribunal below, in view of the decision of the Supreme Court in the case of Commissioner

of Income Tax vs. Alom Extrusion Ltd., reported in 2009 Vol.390 ITR 306, held that the deletion was justified. Being dissatisfied, the Revenue has come up with the present appeal.

After hearing Mr. Sinha, learned advocate, appearing on behalf of the appellant and after going through the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Alom Extrusion Ltd., we find that the Supreme Court in the aforesaid case has held that the amendment to the second proviso to the Sec 43(B) of the Income Tax Act, as introduced by Finance Act, 2003, was curative in nature and is required to be applied retrospectively with effect from 1st April, 1988. Such being the position, the deletion of the amount paid by the Employees' Contribution beyond due date was deductible by invoking the aforesaid amended provisions of Section 43(B) of the Act. We, therefore, find that no substantial question of law is involved in this appeal and consequently, we dismiss this appeal. Urgent xerox certified copy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.

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