Assessee Wins Appeal Over Income Tax Addition: Delay Condoned, Deduction Allowed

The appeal filed by the assessee against the order of the Commissioner of Income-tax(Appeals)-II, Ludhiana was allowed. The delay of 29 days in filing the appeal was condoned due to unintentional reasons. The issue of addition of Rs.1,86,799/- for employees' contribution to Provident Fund and ESIC was resolved in favor of the assessee based on timely payments before the income tax return due date. The Tribunal directed the Assessing Officer to allow the deduction, following a relevant precedent. The appeal outcome favored the assessee, and the order was pronounced on October 4, 2012.

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Issues involved: Appeal against order of Commissioner of Income-tax(Appeals)-II, Ludhiana u/s 143(3) of the Income Tax Act, 1961. Delay of 29 days in filing present appeal. Addition of Rs.1,86,799/- on account of employees' contribution to Provident Fund and ESIC.

Delay in filing appeal:
The assessee filed an appeal after a delay of 29 days and sought condonation of the delay, attributing it to the simultaneous handling of appeals for the assessee and its sister concern. The Tribunal accepted the unintentional nature of the delay, condoned it, and admitted the appeal.

Employees' contribution to Provident Fund and ESIC:
The only issue raised in the appeal was the addition of Rs.1,86,799/- for belated payment of employees' contribution to PF and ESIC. The Assessing Officer observed the delayed payments but acknowledged that they were made before the due date of filing the income tax return. The Tribunal referred to the precedent set by CIT Vs. M/s Lakhani India Ltd. (2010) 188 Taxman 132 (P&H) and directed the Assessing Officer to allow the deduction of Rs.1,86,799/-, in line with the High Court's ruling. Consequently, the grounds of appeal were upheld, and the appeal by the assessee was allowed.

Conclusion:
The appeal filed by the assessee was allowed, and the order was pronounced in the Open Court on the 4th day of October, 2012.

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