2010 (11) TMI 386

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....been claimed for determination by this court :   "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in deleting the addition made on account of disallowance of the payment of ESI deposited beyond the due date ?"   3. The facts, in brief, necessary for adjudication, as narrated in the appeal are that the assessee filed return of income declaring loss of Rs. 2,83,85,603 on November 30, 1998. The assessment under section 143(3) was completed on November 17, 2000, where an addition of a sum of Rs. 9,33,264 was made on account of disallowance of the payment of contribution towards Employees' State Insurance deposited beyond the due date. The Commissioner of Income-tax (A....

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....ns of section 43B of the Act before embarking on the adjudication of the controversy involved in the present appeal.   7. Section 43B provides for disallowance of unpaid statutory liability. This section was inserted by the Finance Act, 1983, with effect from April 1, 1984. The purpose of this provision is to discourage those assessees who failed to clear their statutory liability relating to payment of excise duty, employees' contribution to provident fund, etc., within time whereas they laid claim for deductions in respect thereof from their income on the plea that liability to pay these amounts had accrued during the relevant previous year. After the insertion of section 43B, the assessee was entitled to claim deduction on accoun....