Dismissed appeal on Provident Fund deduction delay & Cess provision disallowance upheld. TDS credit allowed for rent received.

The appeal was dismissed concerning the deduction of Employees' Contribution to Provident Fund due to a delay in depositing the contribution. The Tribunal upheld the denial based on a previous High Court decision. Additionally, the disallowance of a provision for Cess on royalty was upheld as there was no actual liability for the Cess. The Tribunal rejected the appellant's request to avoid double taxation due to insufficient documentation. However, the Tribunal directed the Assessing Officer to allow credit for TDS on rent received, following a precedent where TDS credit was allowed based on the year the income was assessable.

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Issues:
1. Deduction of Employees' Contribution to Provident Fund
2. Disallowance of provision for Cess on royalty
3. Credit for TDS of rent received

Deduction of Employees' Contribution to Provident Fund:
The appeal was against the order of the Ld. Commissioner of Income-tax(Appeals) regarding the deduction of Employees' Contribution to Provident Fund. The appellant company was denied the deduction as the contribution was deposited beyond the prescribed time limit under the Provident Fund Act. The appellant admitted that the issue was covered against them by a decision of the Hon'ble Jurisdictional High Court. The Tribunal rejected the appeal in line with the High Court's decision.

Disallowance of provision for Cess on royalty:
The appeal challenged the disallowance of a provision for Cess on royalty made by the Assessing Officer. The provision was created during the relevant accounting year but was later reversed and offered to tax in the subsequent year as the Cess was not required to be paid. The Tribunal found that the disallowance was justified as there was ultimately no liability of Cess on the royalty. The appellant's request to avoid double taxation on the same income in the subsequent year was declined due to lack of supporting documentation. The addition made by the Assessing Officer was sustained.

Credit for TDS of rent received:
The issue revolved around the denial of credit for TDS on rent received by the appellant. The Assessing Officer disallowed the credit as the rent was not offered as income. However, the Tribunal referred to a similar case where credit for TDS was allowed by considering the year in which the income was assessable to tax. Following the precedent, the Tribunal directed the Assessing Officer to allow the credit for TDS of the specified amount. The appeal was partly allowed in this regard.

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