Cbdt circular : no disallowance under section 43b

Circulars 1461 views 2 replies

Jitendra Panwar, FCA

Tax Practitioner

641 Points Joined August 2009

The CBDT has clarified that No disallowance can be made u/s 43B of the I.T. Act if assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, on or before the ‘due date’ applicable in his case for furnishing the return of income under section 139(1) of the Act.

Circular No. 22/2015 dated 17-12-2015 [ F. No. 279/Misc./140/2015-ITJ ]

Replies (2)

Vijay Thakkar

Partner

34 Points Joined March 2012

For A. Y. 2013-14 as per CBDT Order u/s. 119 dated 24/10/2013, "where the ‘due date’ of furnishing reports of audit and corresponding income-tax return was 30th September, 2013 and where the same are furnished electronically on or before 31st October, 2013, such reports of audit and returns of income shall be deemed to have been furnished within the ‘due date’ prescribed under section 139 of the Income-tax Act, 1961”. Does this apply to the VAT Amount paid for F. Y. 2012-13 on 30/10/2013? Please reply

Jitendra Panwar, FCA

Tax Practitioner

641 Points Joined August 2009

As per me the order u/s 119 dated 24-10-2013 did not extend the due date specified under sub section (1) of section 139, failure to deposit tax/duty/ESI/PF etc. with in the specified time i.e. on or before 30-09-2013 may attract disallowance.

The order u/s 119 only stated that the due of returm filing u/s 139(1) be treated 31-10-2013 as per power given on this regard. The Law part of section can only be modify through parliament and not merely order/notification/circular.