TaxTMI 
TaxTMI 
2021 (1) TMI 833
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....f Rs. 6,88,83,063/- made for depositing the employees' contribution to PF & ESI beyond the prescribed time limited provided in the respective Acts. 2. Whether in the facts and circumstances of the case and in law the ld. CIT(A) is justified in holding that the employees' contribution to PF and ESI are governed by the provisions of Section 43B and not by section 36(1)(va) r.w.s. 2(24)(x) of the Income Tax Act, 1961." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. In this appeal, the Revenue is basically aggrieved by the order of the ld. CIT(A) in deleting disallowance made for depositing the employees' contribution to PF and ESI beyond the prescr....
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....ive argued that assessee deposited PF CPF and GPF contribution after the due date but before due date of filing of return of income. I find that in a recent case of M/s K.S. Automobiles Pvt. Ltd., Jaipur for Assessment Years 2013-14 and 2014-15 in ITAT Nos. 1184/JP/2018 & 1185/JP/2018 dated 08.03.2019 the Hon'ble ITAT, Jaipur has decided as follows:- "2. The solitary common issue raised in these appeals is regarding disallowance of employees construction to PF and ESI within the due date of filing of return of income but after the due date of payment as per respective Acts PF & ESI 3. We have heard the Id. AR as well as Id. DR and considered the relevant material on record. At the outset, we note that this issue is cov....
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....de to the State Renewal fund is solely for the purposes of the welfare and benefit of the employees. In our view, it is for the assessee to decide whether any expenditure should be incurred in the course of business and expenditure of this nature being for business expediency is certainly allowable deduction under section 37(1) of the Act. In our view any normal expenditure for the welfare and benefit of the employees is allowable expenditure under section 37(1), the Tribunal has come to a finding of fact that it was a legal obligation of the respondent-assessee towards contribution of the said amount to the State Renewal Fund and there being a legal obligation as well in our view the Tribunal has come to a correct conclusion." In ....
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.... Id. CIT(A) the same is in favour of the assessee though due to typographical mistake it was misunderstood by the Id. CIT(A) as in favour of the Revenue. Accordingly, in view of a series of decisions of the Hon'ble jurisdictional High Court in favour of the assessee and further Hon'ble Supreme Court in case of PCIT vs. Rajasthan State Beverages Corporation Ltd. 250 taxmann 16 has dismissed the SLP filed by the Department this issue is decided in favour of the assessee and against the Revenue. Hence, disallowances/additions made by the AO on account of employees contribution to PF & ESI are deleted." In view of the same, the disallowance on this account made by the Assessing Officer is deleted. This ground of appeal is allow....
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....les. In this case, the assessee made the above payments amounting to Rs. 19,73,42,499/- after the prescribed due date. Hence, it forms the taxable income of the assessee as per section 2(24)(x) or the Act and deduction of this amount is not allowable u/s 36(1)(va) of the Act. Accordingly, the AO disallowed Rs. 19,73,42,499/- and added the same to the total income of the assessee. 2.5 We found that the issue under consideration is squarely covered by the decision of ITAT, Jaipur Bench in assessee's own case for the A.Y. 2006-07. 2.6 We also found that the decision of ITAT Jaipur Bench in assessee's own case has been upheld by the Jurisdictional High Court vide order dated 07-08-2019 in Appeal No. 284/2018. The precise obser....