Law:

Section:

Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment Amount of PF and ESI contribution paid within 2 to 4 days after grace period provided under section 43B but before filing return, could not be disallowed under section 43B In view of the Supreme Court decision in CIT v. Vinay Cement Ltd. [2007] 213 CTR (SC) 268, amount of PF and ESI contribution paid within 2 to 4 days after the grace period provided under section 43B but before filing the return, could not be disallowed under section 43B. JUDGMENT The Revenue is aggrieved by an order dated October 12, 2006, passed by the Income-tax Appellate Tribunal, Delhi Bench "F", New Delhi ("the Tribunal), in I.T.A. No. 2413/Del/2004 relevant to the assessment year 2001-02. The case relates to the addition of an amount of Rs. 10,37,737 and Rs. 1,88,172 made by the Assessing Officer on account of delayed payment of provident fund and employees' State insurance respectively. According to the assessee/ the amount was paid within 2 to 4 days after the grace period provided under section 43B of the Income-tax Act, 1961 ("the Act") but before filing the return. According to the assessee, it was at best a technical default. The Assessing Officer did not accept the view of the assessee and the Commissioner of Income-tax (Appeals) "the CIT(A)" upheld the view of the Assessing Officer. However, the Tribunal has reversed…

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