COMMNR. OF INCOME TAX Vs. ORISSA STEVEDORES

JUDGEMENT

(1.) THIS appeal has been preferred by the Revenue, under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack, arising out of the order passed in I.T.A. No. 269/CTK/2005 dt. 30.8.2006 for the assessment year 2000 -01, proposing following substantial questions of law.

(2.) THE Assessing Officer disallowed the deduction of payments towards E.S.I. and E.P.F. which remained outstanding on the ground that the deposit was not within the due date as per Section 36(1)(va) and Section 43B of the Income Tax Act. Relying upon the judgment of the Hon'ble Supreme Court in the case of Allied Motors Pvt. Ltd. v. C.I.T. : (1997) 139 CTR (SC) 364, the C.I.T.(A) upheld the plea of the assessee. It was held that Section 43B added by the Finance Act, 1987 was clarificatory and, thus, has to be taken to be retrospective. This view has been upheld by the Tribunal.

(3.) IT is not disputed that the matter is covered by the judgment of the Hon'ble Supreme Court in the case of Allied Motors Pvt. Ltd. (supra).