COMMISSIONER OF INCOME TAX Vs. REI AGRO LTD.

JUDGEMENT

(1.) THE Assessing Officer disallowed the contribution made by the assessee towards provident fund to the extent of a sum of Rs. 1,92,913 on the ground that the deposit was made beyond the stipulated time.

(2.) THE Assessing Officer also disallowed the expenditure under section 14A of the Income Tax Act, 1961 without first recording that he was not satisfied with the correctness of the claim as regards the claim that 'no expenditure' was made by the assessee.

(3.) THE contribution towards provident fund, even if deposited beyond the stipulated period, is allowable by virtue of the amendment and the disallowance under section 14A of the Income Tax Act, 1961 is plainly contrary to the provisions of the statute. The CIT, in the circumstances, allowed the appeal of the assessee and the Tribunal did not interfere.