Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 160 - ITAT AHMEDABADDisallowance of employees contribution towards PF and ESIC and provision for employees’ contribution towards PF and ESIC paid beyond due date - CIT(A) deleted the addition u/s.36(1)(va) - Held that:- There is no fallacy in the findings of learned CIT(A) because now this issue is squarely covered by the decisions of Alom Extrusions (2009 (11) TMI 27 - SUPREME COURT ) and P.M. Electronics, (2008 (11) TMI 3 - DELHI HIGH COURT) because the PF and ESIC contribution of employees was deposited before the due date of the filing of the return, no disallowance to be made - Decided against revenue. Disallowance u/s 40(a)(ia) - CIT(A) deleted the addition following an order of the Special Bench pronounced in the case of Merliyn Shipping (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) - whether Section 40(a)(ia) of the Act can be invoked only to disallow expenditure of the nature which is shown as “payable” as on the date of the balance sheet and it cannot be invoked if amount is not outstanding even if payment has been paid without deduction of tax? - Held that:- The issue now stood covered by few orders of the Hon’ble High Court, wherein it is held that if the payment is made before the due date of filing of the return and the TDS deducted has duly been paid within that period then the same is allowable as an expenditure. In view of these orders, we hereby hold that although the decision of Merliyn Shipping (supra) was followed by learned CIT(A) is no more a good law but otherwise the issue now stood covered in favour of the assessee
|