High Court quashes ITAT judgment, remits matter to Assessing Officer for new order.

The High Court quashed the ITAT's judgment and remitted the matter back to the Assessing Officer, directing an appropriate order within six months based on previous court decisions. The Court allowed the Tax Appeal partially, with no order as to costs.

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Issues:
1. Whether the Appellate Tribunal was right in directing the Assessing Officer to allow payment made to PF & ESI on the basis of actual payment during the relevant previous yearRs.
2. Whether the deduction of PF & ESI collected from employees can be allowed under Section 36(1)(va) if the payment was made within the due date prescribed under the relevant Acts and the provisions of Section 43B are not applicableRs.

Analysis:

*Issue 1:*
The appellant challenged the judgment of the Income Tax Appellate Tribunal (ITAT) directing the Assessing Officer to allow the payment made to PF & ESI based on actual payment during the relevant previous year. The appellant argued that the substantial questions of law in the appeal had already been addressed in a previous decision of the Division Bench of the Court. The respondent, on the other hand, contended that the matter should be remanded to the Assessing Officer for a fresh decision in light of previous court decisions. The High Court quashed the ITAT's judgment and remitted the matter back to the Assessing Officer. The Assessing Officer was directed to pass an appropriate order considering the observations and decisions of the Court in previous cases within six months.

*Issue 2:*
The second issue revolved around whether the deduction of PF & ESI collected from employees could be allowed under Section 36(1)(va) if the payment was made within the due date prescribed under the Acts and Section 43B provisions were not applicable. The High Court, in its judgment, set aside the ITAT's order and remitted the matter to the Assessing Officer for a fresh decision. The Assessing Officer was instructed to pass an appropriate order in accordance with the law and previous court decisions within six months, after providing an opportunity to the assessee. The Tax Appeal was allowed to the extent mentioned in the judgment, with no order as to costs.

In conclusion, the High Court's judgment addressed the issues raised by the appellant regarding the payment to PF & ESI and the deduction of PF & ESI collected from employees. The Court remitted the matter back to the Assessing Officer for a fresh decision in light of previous court decisions, ensuring compliance with the law and providing an opportunity to the assessee.

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