2019 (7) TMI 183

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.... 50,046/- of ESIC totaling to Rs. 42,85,638/- is not allowable as deduction u/s 36(l)(va) and is assessee's income as per provisions of section 2(24)(x) of the Income Tax Act, 1961 by ignoring the Explanation given to Section 36(1 )(va) of the Income Tax Act, 1961 in respect of due date." 2. On the facts and in the circumstances of the case, the Id. CIT(A) has erred in deleting the addition made by the Assessing Officer of Rs. 34,99,178/- as reported by the Auditor in Form 3CD column 21(i) that the assessee-company has not paid' on or before furnishing the return of income which was disallowed by the Assessing Officer within the meaning of section 43B of the Income Tax Act, 1961. 3. The assessee company is engaged in the business of serv....

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....to Section 36(1)(va) of the Act in respect of due date. As regards to Ground No. 2 of the Revenue's appeal, the Ld. DR submitted that the CIT(A) erred in deleting the addition made by the Assessing Officer of Rs. 34,99,178/- as reported by the Auditor in Form 3CD column 21(i) that the assessee-company has not paid on or before furnishing the return of income which was disallowed by the Assessing Officer within the meaning of Section 43B of the Income Tax Act, 1961. 6. During the hearing, the Ld. AR was not present. Therefore, we are proceeding on the basis of submissions before the CIT(A). The submissions are as under:- "1. That the appellant denies its liability to be assessed at an income of (-) Rs. 10,36,510/- and accordingly denies i....

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.... claimed in the return (which was Rs. 2,77,73,396/-) that to without any basis and surmises. 5. (a) That having regard to the facts and circumstances of the case, Ld. A.O. has erred in law and on facts in disallowing leave encashment amounting to Rs. 34,99,178/- u/s 43B of Income Tax Act, 1961. b) That in any case and in any view of the matter, Ld. A.O has erred in law and on facts by disregarding the fact that the assessee company did not claim deduction of leave encashment amounting to Rs. 34,99,178/- while computing the total income under the head ' Profits from Business or Profession', as can be seen from computation of income filed during assessment proceedings. (C) That in any case and in any view of the matter, Ld. A.O ....

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....n'ble jurisdictional High Court, which is binding on the Tribunal or the CIT(A) functioning under the jurisdiction of the Hon'ble Delhi High Court. In view of the above, we do not find any error in the order of the CIT(A) and accordingly, we uphold the same. Ground No. 1 of the appeal of the Revenue is dismissed. As regards Ground No. 2, the same is also decided correctly by the CIT(A). The CIT(A) held as under: "9.9. I have carefully considered the observations of the Assessing Officer and submissions of the Appellant. From the computation of income, it is seen that Appellant has disallowed the Provision for Leave Encashment of Rs. 20,63,868/- and has claimed the amount of Leave Encashment of Rs. 20,22,855/- on actual payment bas....