Provident fund and ESI deduction allowed before return-filing due date; section 14A disallowance deleted without exempt income.

Belated remittance of provident fund and ESI contributions was treated as allowable where payment was made before the due date for filing the return, following binding jurisdictional precedent. Disallowance under section 14A was not sustained in the absence of exempt income, as the recurring issue was covered by a coordinate bench decision in the assessee's own earlier years. The result was relief to the assessee on both issues, with the revenue's objections rejected and the cross-objections allowed.

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Issues: (i) Whether belated remittance of provident fund and ESI contributions, though paid within the due date for filing the return of income, was allowable as deduction; (ii) Whether disallowance under section 14A of the Income-tax Act, 1961 was warranted in the absence of exempt income.

Issue (i): Whether belated remittance of provident fund and ESI contributions, though paid within the due date for filing the return of income, was allowable as deduction.

Analysis: The issue was treated as covered by the jurisdictional High Court decision in Sabari Enterprises, on the basis of which the first appellate authority had granted relief to the assessee.

Conclusion: The deduction was held allowable, and the revenue's objection failed.

Issue (ii): Whether disallowance under section 14A of the Income-tax Act, 1961 was warranted in the absence of exempt income.

Analysis: The issue was treated as covered by the coordinate bench decision in the assessee's own case for earlier assessment years, following which the contrary finding of the first appellate authority was not sustained.

Conclusion: The disallowance was deleted, and the assessee's objection succeeded.

Final Conclusion: The revenue's appeal was dismissed and the assessee's cross objections were allowed, resulting in relief to the assessee on both issues decided.

Ratio Decidendi: A binding jurisdictional precedent and a coordinate bench decision govern identical recurring issues, including deductibility of employee welfare contributions paid before the return filing due date and disallowance under section 14A where exempt income is absent.

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