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Curative Amendment to section 43B of the Act vide Finance Act, 2003: The Finance Act 2003 deleted the second proviso to Section 43B with effect from 01 April 2004 of the Act which specifically made reference to section 36(1 )(va) of the Act for the due date payment of employee's contribution to Provident Fund and other employee welfare fund as specified under section2(24)(x) of the Act. Vide the said amendment employee's contributions to PF would be allowed as business expenditure, if the same is paid within the due date of filing return of income under section 139( I) of the Act. This view was upheld in the following judicial precedents:
CIT vs Jaipur Vidyut Vitran Nigam Ltd[ITA No 278,280,281 & 301 012011J CIT v Udaipur Dugdh Utpadak Sahakari Sangh Ltd [(2013) 35 taxmann.com 616 (Rajasthan) The case law relied upon by the AO, being, CIT Cochin vs M/s South India Corporation Ltd 58 Taxman 208 (2015) pertains to AY 1992-93 i.e., prior to introduction of the aforesaid curative amendment. Hence, the aforesaid judicial ruling would not be applicable for the Company pursuant to the curative amendment.
It may be noted that the matter has not attained finality in light of following developments with respect to following rulings by the Kerala High Court on similar issue: