2017 (9) TMI 1094

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....sallowing contribution made to 'Sparsh Trust' without appreciating the fact that assessee failed to prove direct business nexus and it is not an allowable expenditure u/s 37(1). 2. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) was justified in deleting the addition of Rs. 14,48,774/- made by the AO for depositing the employee's contribution to PF & ESI beyond the prescribed time limit provided in respective Acts. 3. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) was justified in holding that employee's contribution to PF & ESI are governed by the provision of section 43B and not by section 36(1)(va) r.w.s. 2(24)(x)of the I.T.Act." 2. At the outset, the ld AR....

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....milk animals at the village level from where it procures the milk are healthy and for this purpose, SPARSH Trust incurred expenditure in providing vaternity care, regular treatment, emergency care, preventive care, breed improvement through A.I. uninterrupted supply of nutritional supplement etc. Therefore, in our considered view, contribution made by assessee to this trust is an expenditure incurred wholly and exclusively for the purpose of business which is allowable u/s 37(1). From the income and expenditure account of the trust, it can be noted that it has incurred an expenditure in pursuance of its objectives and after considering the receipts, there is deficit to the trust in the year under consideration. Such deficit is met out of th....

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....ly conceded that the matter is covered in favour of the assessee by earlier orders of the Tribunal. 5. Undisputedly, there is no change in the facts and circumstances of the case. No contrary authority has been brought to our notice. The issue in question is covered in favour of the assessee by the earlier decisions of the Coordinate Benches in assessee's own case. Respectfully following the earlier decisions of the Coordinate Benches, the contribution of Rs. 1,31,21,958 made by the assessee to SPARSH Trust is accordingly allowed as an eligible business expenditure under section 37(1) of the Act. Thus, the ground raised by the Revenue is dismissed. 6. In Ground No.2 & 3 of the Revenue's appeal, the disallowance under dispute relates t....