TaxTMI 
TaxTMI 
2017 (5) TMI 218
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....ng complete bed rest with only stick support walk. Learned Departmental Representative fails to dispute all these solemn averments. We therefore observe that the assessee's delay in filing appeal of 255 days is neither intentional nor deliberate. The same stands condoned. The main appeal itself is now taken up for adjudication. 3. The assessee raises three substantive grounds in the instant appeal inter alia challenging both the lower authorities' action in disallowing / adding leave salary of Rs. 25,65,489/- u/s.43B(f), interest expenses of Rs. 90,000/- on the ground of non charging of interest on loans given to partner and the last head of disallowance of Rs. 79,85,372/- pertaining to contribution made towards provident funds paid before the due date of filing of the return; respectively. 4. A perusal of the instant case file indicates that this is second round of litigation relating to all these three issues before the tribunal. The assessee had earlier filed ITA No.3925/Ahd/2007 raising the very three issues. A coordinate bench in its order dated 22.01.2010 remitted the above appeal back to the Assessing Officer. Learned co-ordinate bench's observations qua the first issue of....
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....s are made to the guards on or before the due date for filing of their return, therefore, we are of the view that the matter may be remanded to the Assessing Officer for consideration in the light of the decision of Hon'ble Supreme Court referred to this order. We accordingly set aside the orders of the lower authorities and restore this issue to the file of Assessing Officer with a direction to him to re-decide this issue by giving reasonable sufficient opportunities of being heard to the assessee. The assessee is also directed to furnish the above details as noted above in this order in order to satisfy the Assessing Officer about genuineness claim of unpaid salary/wages to the guards. Assessee shall also furnish the details of payment before Assessing Officer to show that payments are made to the guards on or before due date of filing of the return. With the above directions, this ground of appeal of the assessee is allowed for statistical purposes." 5. It appears that the assessee failed to file the necessary evidence in course of the impugned consequential proceedings. It did not provide / file permanent addresses of the concerned employees so as to prove genuineness of ....
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.... the decision of Hon'ble Karnataka High Court in the case of CIT vs. Sridev Enterprises 192 ITR 165 (Kar.) in support of the same. 24. On the other hand, Learned Departmental Representative relied upon the orders of the authorities below and submitted that decision in the case of Sridev Enterprises(supra), is not applicable because in that case the issue was relating to seven years back and in that context the issue was decided in favour of the assessee. 25. We have considered the rival submissions and perused the material available on record and find that Rs. 5 lacs is the opening balance on 01/04/2002 in the case of Shri R.P.Singh on account of loan account. Therefore, it is clear that the aforesaid loan was not given in the assessment year under appeal. The findings of the authorities below are, therefore, factually incorrect. Similarly, the Assessing Officer noted that since assessee was paying interest on loans and advances, therefore, assessee should have charged interest from those partners. The Assessing Officer has not made out any case of diversion of any interest- bearing borrowed funds to Shri R.P.Singh. The Learned CIT(Appeals), however, noted the same in the i....
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....omsingh B.Rawat(supra) in which the Tribunal following the decision in the case of P.M.Electronics(supra) and of Vinay Cement Ltd.(supra), allowed the claim of the assessee because payments are made on account of employees' contribution before the due date of filing of the return u/s.139(1) of the I.T. Act, 1961. A similar view has been taken by the Hon'ble Madras High Court. The issue is finally settled by the decision of Hon'ble Supreme Court which is followed by Hon'ble Delhi High Court and is consistently followed by the ITAT Ahmedabad Bench, therefore, we do not find any justification to sustain even part addition on account of employees' contribution towards PF if the same is paid before due date of filing of the return u/s.139(1) of the I.T. Act, 1961. Since the view is already taken in favour of the assessee, therefore, the decision cited by the Learned Departmental Representative would not apply to the matter in issue. Since the Learned CIT(Appeals) has already restored the matter to the file of Assessing Officer, therefore, we direct the Assessing Officer to verify the payment on account of employees' contribution and employer's contribution an....