COMMISSIONER OF INCOME TAX Vs. DHARMENDRA SHARMA
LAWS(DLH)-2007-11-223
HIGH COURT OF DELHI
Decided on November 28,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
DHARMENDRA SHARMA Respondents

JUDGEMENT

- (1.) The Revenue is aggrieved by an order dt. 12th Oct., 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench 'F', New Delhi ('the Tribunal') in ITA No. 2413/Del/2004 relevant for the asst. yr. 2001-02. The case relates to the addition of an amount of Rs. 10,37,737 and Rs. 1,88,172 made by the AO on account of delayed payment of provident fund and Employees State Insurance respectively. According to the assessed, the amount was paid within 2 to 4 days after the grace period provided under Section 43B of the IT Act, 1961 ('the Act') but before filing the return. According to the assessed, it was at best a technical default.
(2.) The AO did not accept the view of the assessed and the Commissioner of Income Tax (Appeals) [CIT(A)] upheld the view of the AO. However, the Tribunal has reversed the decision of the CIT(A).
(3.) Learned Counsel for the assessed has placed before us a decision of the Gauhati High Court in CIT V/s. George Williamson (Assam) Ltd. . This decision was taken in appeal before the Supreme Court and by an order dt. 7th March, 2007 CIT V/s. Vinay Cement Ltd., 2007 213 CTR 268 Ed., the Supreme Court observed that it was concerned with the law as it stood prior to the amendment of Section 43B of the Act. The assessed was entitled to claim the benefit provided under Section 43B of the Act for that period particularly in view of the fact that he had contributed to provident fund before filing the return. Accordingly, the SLP filed by the Revenue against the decision of Gauhati High Court was dismissed.;


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