2008 (1) TMI 433

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.... "The learned CIT(A) was not justified to uphold the disallowance of PF and ESIC amounting to Rs. 3,66,842 and Rs. 72,015 respectively. The disallowance of PF and ESIC at Rs. 3,66,842 and Rs. 72,015 respectively is unfounded and uncalled for and extremely exorbitant." 4. The assessee had claimed deductions in respect of payments of PF and ESIC. The AO has examined the details furnished by the assessee and found that following payments were made beyond the date and even after the grace period of 5 days allowed by the PF Department: PF ------------------------------------------------------------- Month         Total amount of   Due date of  Date of payments   &nb....

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....bsp;        15-2-2001        2-6-2001 Feb.             41,074          15-3-2001       13-7-2001 March            38,896          15-4-2001       12-8-2001                -------- Total:         3,68,842 ------------------------------------------------------------- E.S.I.C. ---------....

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....p; 21-4-2001       13-6-2001                 ------ Total:           72,015 ------------------------------------------------------------- In view of the above, he disallowed a sum of Rs. 3,68,842 relating to PF contribution and a sum of Rs. 72,015 relating to ESIC contributions. 5. The disallowance was upheld by the learned CIT(A). 6. Before us the learned counsel for the assessee submitted that the issue stands covered by the decision of Tribunal Delhi Bench 'D' dt, 1st June, 2007 rendered in ITA No. 286/Del/2005 in the case of M/s Peeson Corporation Ltd. and also....

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....the issue involved in this regard to this extent is restored to the file of AO for verification and compliance. The ground No. 5 of the appeal stands partly allowed for statistical purpose." 8. In the case of Dharmendra Sharma also the Hon'ble Delhi High Court has held that contribution towards PF and ESI paid before the filing of the return cannot be disallowed. After making reference to the decision of the Hon'ble Supreme Court in the case of CIT vs. Vinay Cement Ltd. (2007) 213 CTR (SC) 268. it was held by the Hon'ble Delhi High that the assessee was entitled to claim the benefit provided under s. 43B of the Act for period prior to the amendment of s. 43B of the Act if he had contributed to PF before the due date for filing of the ret....