2011 (8) TMI 1092

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.... PF of employees contribution." 2. We have heard the parties. We find that the assessee has made payment beyond due date as provided under the employees provident fund's Act but the payments are made before filing of return of income. We further find that the assessee has paid the PF dues in some months within the grace period allowed. Now, this issue stands covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of CIT vs. Aloum Extrusion Ltd. 319 ITR 306. The said decision has been followed by the ITAT 'C' Bench Mumbai in the case of M/s. Pinkpen P. Ltd. Vs. CIT in ITA no.6847/Mum/2008 dated 28.8.2010. The operative part of the Tribunal's order on this issue is as under:- "10. The next issue is dis....

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....d in giving relief of Rs. 4 lacs on account of staff welfare expenditure without appreciating the fact that the auditor had himself reported that these expenditure was not covered u/s.40A(9)." 5. In the Tax Audit Report the Auditors have observed that the following payments are not allowed as per sec. 40A(9) of the Act:- i) Officer's club  Rs. 2,00,000/- ii) Staff club Rs. 2,00,000/- ---------------------- Rs. 4,00,000/- ============= 6. The assessee explained to the A.O. that the said expenditure has been incurred for the celebration of sports and cultural activities on the occasion on the Independence Day and several other occasions. The A.O. did not accept the explanation of the assessee and disallowed the entir....