TaxTMI 
TaxTMI 
2024 (7) TMI 945
X X X X Extracts X X X X
X X X X Extracts X X X X
....rred in directing Ld AO to ascertain the deduction of 'unclaimed VAT Refund w/off of Rs.13,72,369/- applying provisions of Section 43B of the Income Tax Act, 1961. 2. The Ld. CIT (A) has erred in confirming the action of Ld. AO in disallowing Rs.5,59,192/- on account of excess contribution to Provident Fund. The Appellant craves leave to add, amend, supplement, alter and/or delete any of the above Grounds of Appeal. 2. The brief facts of the case are that assessee company has filed its return of loss on 31.10.2017 declaring loss of Rs.(-)1,09,81,701/-. Case of the assessee was selected for scrutiny and statutory notices were issued in due course. Assessee is engaged in the business of Textile Processing. Return of the assessee was ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... same would be adjusted against the asset created in the Balance Sheet. This treatment is revenue neutral. 5. Alternately, Assessee can also debit the same amount to P&L A/c and claim entire amount as deduction, and offer the refund amount as income in the year of receipt. Really, if one follows section 145 and 41(1) of the Act, then Assessee is entitled to the entire amount of Rs. 32,60,568/- as deduction in the current year, by applying section 145 and to offer, the refund amount in the year in which such refund is received in terms of section 41(1). This would be detrimental to the Department. Further, the same treatment is not followed by the Assessee. The balance amount of Rs.13,72,369/- is the amount which is a straightforward expens....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 5,59,192/- on account of excess contribution to provident fund. Assessee's business requires not only permanent manpower on its role but also the contractual and casual labour directly had as well as taken on contract. The amount of salary claimed by the assessee amounting to Rs. 34,84,457/- and 27% thereon will be Rs. 9, 40,803/- as per rule 87 of the Income Tax Rule 1962. The total amount as PF contribution claimed by assessee is Rs. 14, 99,995/-. This difference to the tune of Rs. 5,59,192/- is on account of PF contributed by the assessee on his own share as well as share of contractual labour also. As per EFP and MP Act 1952, any person working for an establishment whether his on his role or otherwise, establishment will be treated as....