2016 (5) TMI 1590

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....ontravention of the provisions of section 36(1)(va) of the I.T. Act, 1961. The AO asked the assessee to explain as to why the amount of Rs.5,12,976/- should not added to the total income declared in view of provisions of section 2(24)(x) r.w.s. 36(1)(va). The assessee submitted that since the employees' contribution to PF and ESI was paid before the due date of filing of the return u/s.139(1) of the I.T. Act., therefore, the same is an admissible deduction in view of omission of second proviso to section 43B w.e.f., 01-04-2004. Various decisions including the decision of Hon'ble Supreme Court in the case of CIT Vs. Alom Extrusions Lt. reported in 319 ITR 306 and the decision of Hon'ble Bombay High Court in the case of CIT Vs. Pamwi Tissues ....

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....ed. 6. Aggrieved with such order of the CIT(A) the assessee is in appeal before us. 7. The Ld. Counsel for the assessee at the outset filed a copy of the decision of Hon'ble Bombay High Court in the case of CIT Vs. Ghatge Patil Transports vide Income Tax Appeal No.1002/2012 and 1034/2012 order dated 14-10-2014 and submitted that the Hon'ble High Court has held that the decision of Hon'ble Supreme Court in the case of Alom Extrusions Ltd. (Supra) applies to employees' contribution as well as employer's contribution and therefore both the employees and employers contribution are covered under the amendment to section 43B. Accordingly, the Hon'ble High Court upheld the decision of the Tribunal that payments thereof are subject to benefit....