IN THE HIGH COURT OF DELHI AT NEW DELHI 
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  29.04.2011 
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 Present:        Ms. Suruchii Aggarwal, counsel for the appellant. 
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 + ITA No. 692/2011 
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 Two additions made by the Assessing Officer had been deleted by the ITAT 
 and against the order of the ITAT, the present appeal is preferred by the 
 appellant.  These additions are: 
 (1) The respondent/assessee had paid Provident Fund dues to the extent of 
 `1558.31 lacs after the stipulated date but before the date of filing of the 
 return. 
 These were not claimed in the original return filed by the assessee.  The 
 assessee did not revise its return, as permissible under the law, however, claim 
 was made by way of an application subsequently filed before the Assessing 
 Officer during assessment proceedings.  The expenses were disallowed on this 
 ground. 
 (2) The assessee also made claim of Provident Fund dues of `25.03 lacs on the 
 basis of amendments (particularly Second Proviso) under Section 43B of the 
 Income Tax Act, which was again disallowed by the Assessing Officer. 
 Insofar as, first disallowance is concerned, it is not in dispute that 
 under the law, such a claim towards Provident Fund dues even when the premiums 
 are made after the due date but before filing of the return is allowable as 
 business expenditure and cannot be rejected in view of the provision under 
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 Section 43B of the Income Tax Act.  The only irregularity on the part of the 
 assessee was that it did not make this claim initially in the revised return 
 filed by means of application. 
 Having regard to the fact that the respondent/assessee is the Government of 
 India Undertaking and for the year in question it had shown loss of `153768.75 
 crores, we are of the opinion that the Department should not be allowed to raise 
 this technicality when the claim is admissible under the law.  We make it clear 
 that it is because of the aforesaid reasons and, particularly, that the 
 respondent/assessee is the Government of India Undertaking, we are undertaking 
 this course of action when giving any opinion in question of law. 
 Notice to the respondent limited to second Issue, returnable on 23rd May, 
 2011. 
 Notice shall indicate that the appeal would be finally heard and disposed 
 of on the next date. 
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 A.K. SIKRI, J. 
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 APRIL 29, 2011 
 M.L. MEHTA, J. 
 KA 
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