2022 (3) TMI 37

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....Y.) 2017-18. 2. Brief facts of the case are that the assessee is a private limited company filed its return of income for the A.Y.2017-18 admitting total income of Rs. 1,13,97,760/- on 29.10.2017. The case was selected for scrutiny under CASS. During the course of assessment proceedings, the Assessing Officer (AO) noted that the assessee made payment of employees' contribution of EPF of Rs. 8,25,688/- and payment of employees' contribution of ESIC of Rs. 1374/- on or after the due dates as prescribed in the relevant Acts. The AO relied on CBDT's Circular No.22 of 2015 dated 17.12.2015 and disallowed the aggregate claim of deduction of Rs. 8,27,062/- u/s 36(1)(va) on account of employees contribution of EPF & ESIC was not paid within the ....

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....961 (in short 'Act') and relied on the decision of Hon'ble Karnataka High Court in the case of Essae Teraoka (P) Ltd. Vs. DCIT, reported in 366 ITR 408, wherein, it was held that if the payments were made before filing of the due date of filing of return of income u/s 139(1), the assessee is entitled to claim the deduction. The assessee also relied on the decision of Hon'ble Bombay and Andhra Pradesh High Courts, reported in 156 ITR 11 & 169 ITR 564 respectively, for the proposition that when there are several judgements of different Hon'ble High Courts both in favour and against the assessee, the view favourable to the assessee is to be followed. Therefore, submitted that the ground raised by the assessee is to be allowed. 6. On the oth....

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....sessee, relying on the decision of Hon'ble Karnataka High Court in the case of Essae Teraoka (P) Ltd. Vs. DCIT (supra), wherein, the Hon'ble Karnataka High Court viewed as follows : "8. The Hon'ble Karnataka High Court, in the case of Essae Teraoka (P) Ltd. Vs. DCIT 366 ITR 408 took the view that the word contribution occurring in section 43B of the Act would include employees' contribution to PF in the light of the definition of the word contribution as per the provisions of section 2(c) of the PF Act. As per the said section, contribution would mean both employer's contribution and employees' contribution. Accordingly, it was held that the provisions of section 43B of the Act allowing deduction for payment made before the due dat....