Commissioner of Income Tax vs Dharmendra Sharma

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 u/s 43B of the IT Act, 1961 (''the Act'') but before filing the

return. According to the assessed, it was at best a technical default.

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).

Learned Counsel for the assessed has placed before us a decision of the Gauhati High Court in Commissioner of Income Tax Vs. George

Williamson (Assam) Ltd., This decision was taken in appeal before the Supreme Court and by an order dt. 7th March, 2007 reported as CIT v.

Vinay Cement Ltd. (2007) 213 CTR (SC) 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 u/s 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.

The decision of the Supreme Court is fully applicable to the facts of the present case in view of what we have already mentioned above.

Under the circumstance, no substantial question of law arises for our consideration.

The appeal is dismissed. IT Appeal Nos. 642 of 2004 and 497 of 2005 which raise a similar issue be listed for directions on 29th Nov., 2007,

so that they can be disposed of in terms of today''s order.