2019 (1) TMI 539

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....isallowed by the AO with aid of section 36(1)(va) of the Act on account of late payment of employee's contribution to provident fund account. 3. The ld.counsel for the assessee at the very outset submitted that though the issue deserves to be decided against the assessee, because Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corpn Ltd. Vs. CIT, 366 ITR 170 has held that if employees' contribution is not deposited within the time limit provided in PF and ESI Act, then deduction would be disallowed to the assessee. However, he contended that recently Hon'ble Gujarat High Court has observed that judgment of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corpn. Ltd. (supra) and other cases hav....

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....se of Gujarat State Road Transport Corporation Ltd. Vs. CIT (supra). However, as pointed out by the ld.counsel for the assessee, recently, Hon'ble jurisdictional High Court in the case of Salasar Laminates Ltd. Vs. Deputy Commissioner of Income Tax in Tax Appeal No.1186 of 2018 order dated 1.10.2018 has held that since appeal against the judgment of High Court in the case of Gujarat State Road Transport Corporation Ltd. (supra) is pending, and SLP has been granted, liberty was given to assessee to file an application for revival of appeal, in case Hon'ble Supreme Court reverse the decision of the High Court on the issue. 5. It is pertinent to observe that if judgment of Hon'ble High Court in the case of Gujarat State Road Transport Corpo....

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....ken into consideration disallowance of Rs. 11,03,014/- made with the aid of section 14A of the Act read with Rule 8D of the Income Tax Rules. This action of the AO was confirmed by the ld.CIT(A) but restricted to Rs. 9,34,945/-. The ld.counsel for the assessee submitted that in view of Special Bench decision in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (Del)(BS) no increase or decrease can be effected in the book profit calculated under section 115JB on account of certain disallowance made under section 14A. 8. Considering the above facts, we are of the view that Special Bench of the ITAT in the case of Vireet Investment P.Ltd. (supra) has formulated following question for adjudication on this issue: "Whether th....