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2013 (6) TMI 209 - ITAT MUMBAIDisallowance on account of late deposit of contribution to EPF / ESI - disallowance has been made simply for the reason that the assessee did not deposit its contribution before the due date under the respective Act. – Held that:- The Hon'ble Supreme Court in the case of CIT vs. Alom Extrusions Limited [2009 (11) TMI 27 - SUPREME COURT] has held that the amendment to first proviso and omission of the second proviso to section 43B by the Finance Act, 2003 is retrospective. The Hon'ble Delhi High Court in the case of CIT vs. Aimil Limited [2009 (12) TMI 38 - DELHI HIGH COURT] has allowed deduction in respect of employees' share when the amount was paid before the due date under the Act. it becomes clear from the two judgments that both the employer's and employees' contribution are allowable as deduction if the amount of provident fund etc., though belatedly, but is paid before the due date of filing of return u/s 139(1) of the Act. Treatment of interest income as 'Income from other sources' against the Business income claimed by the assessee – Held that:- Tribunal in the assessee's own case for the immediately preceding assessment year has decided this issue in favour of the Revenue. Respectfully following the precedent, the interest income should be considered as falling under the head 'Income from other sources'. Claim of deduction u/s 10A - This ground has two parts. First part deals with the inclusion of Finder fees and Marketing fees in the total turnover. Revenue admitted that the Tribunal in its afore-noted order for the preceding year has decided this issue against the assessee. Respectfully following the precedent, we uphold the action of the AO in this regard. Second component is against the inclusion of expenditure incurred in foreign currency from the total turnover. Revenue submitted that the Tribunal has decided this issue in assessee's favour in the afore-quoted order. The learned Departmental Representative admitted the position stated on behalf of the assessee in this regard. Respectfully following the precedent this issue is held in favour of the assessee. Transfer Pricing adjustment to the value of international transactions- Determination of ALP in respect of international transactions being IT Enabled Services - Held that:- After detailed discussion of that how the method employed by the assessee for determining the ALP in respect of international transactions for the year under consideration is contrary to the statutory provisions having no approval from any judicial forum. If such a wrong method has been inadvertently accepted by the TPO in an earlier year, license can’t be given to assessee to continue calculating the ALP in such a grossly erroneous manner in perpetuity. It needs to be discontinued forthwith. Therefore, reject this contention advanced on behalf of the assessee that the application of such a wrong method be granted a seal of approval on the basis of its acceptance by the TPO in a preceding year.
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