2017 (9) TMI 2040

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....reby the Tribunal has dismissed the appeals of the department. 2. Though served none appeared for the respondent. 3. This Court while admitting the matters framed the following substantial questions of law:- In DBITA No. 68/2015 "1. Whether the Tribunal was legally justified in deleting the disallowance of Rs. 47,17,143/- provided for contractual obligation in the return which was not allowable being contingent/unascertainable liability?" 2. Whether the Tribunal was legally justified in deleting the disallowance of Rs. 3,39,38290/- made on account of employees contribution to provident fund specifically when the amount claimed was not deposited in prescribed time thus being contrary to the provisions of section 43B and 36(1)(va), ....

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....ontrary to the provisions of section 43B and 36(1)(va), 2(24) (x)." In DBITA No.179/2016 "Whether the Tribunal was legally justified in deleting the disallowance of Rs. 8,76,34,111/- made on account of employees contribution to provident fund specifically when the amount claimed was not deposited in prescribed time thus being contrary to the provisions of section 43B and 36(1)(va), 2(24)(x)." In DBITA No. 105/2015 "Whether the Tribunal was legally justified in deleting the disallowance of Rs. 6,45,57,068/- made on account of employees contribution to provident fund specifically when the amount claimed was not deposited in prescribed time thus being contrary to the provisions of section 43B and 36(1)(va), 2(24)(x)." 4. Counsel ....

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....hod of accounting adopted by the assessee. It would also depend upon the historical trend and upon the number of articles produced. A provision is a liability which can be measured only by using a substantial degree of estimation.  A provision is recognized when : (a) an enterprise has a present obligation as a result of a past event (b) it is probable that an outflow of resources will be required to settle the obligation and (c) a reliable estimate can be made of the amount of the obligation. If these conditions are not met, no provision can be recognized. This principle is that if the historical trend indicated that a large number of sophisticated goods were being manufactured in the past and the facts show that defects existed....

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.... 6. Counsel for the respondent has taken us to the order passed by CIT (Appeal) who while considering the case in paragraph 4.3 held as under:- "Moreover, the Hon'ble Delhi High Court in the case of CIT Vs. AIMIL Ltd, 321 ITR 508 has held that no disallowance can be made in respect of Employers P.F. Contribution and Employees P.F. Contribution in case such contributions are paid before due date of filing. It is not in dispute before us that the contributions have not been paid before due date of filing of the return. We therefore, hold that the ld. CIT(A) was justified in deleting the Employers P.F. Contribution and Employees P.F. Contribution." 7. In other appeal, (68/2012) in Paragraph 5 which reads as under:- "As per audit repor....