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2017 (9) TMI 1399 - ITAT KOLKATAAddition u/s 40A - Disallowance of leave salary payment in the shape of staff welfare in violation of rate schedule as per agreement - Held that:- We notice that the assessee has submitted the statement of leave salary payment wherein the payee has signed in front of the amount received by him. The payment made to each payee is below ₹ 20,000/-, hence, it does not attract the provisions of section 40A(3) of the I.T.Act. As, the ld Counsel also pointed out before us, that the assessee is ready to submit the pay register, details of amount paid to payee, books of accounts and other more information, before the AO, therefore, this issue should be sent to the file of the AO for fresh examination. Therefore, we are of the view that this issue requires a fresh examination on the part of the Assessing Officer therefore, we remit the matter back to the file of the Assessing Officer to examine the payment of leave salary and allow the payment as per the provision of the Act. - Decided in favour of assessee for statistical purposes. Disallowance of payment of bonus - Held that:- The assessee has demonstrated before us that two months wages were paid as bonus and reimbursed form M/s Jet Airlines India Ltd. The assessee paid bonus through vouchers which had been produced before the Assessing Officer. However, the Assessing Officer had denied this fact that no vouchers were produced by the assessee. Therefore, we are of the view that this issue requires fresh examination at the end of the Assessing Officer to examine the bonus vouchers and other related documents and information. Therefore, we direct the Assessing Officer to examine the bonus vouchers and other related information and adjudicate the issue afresh as per the provisions of the Act. Therefore, we allow this ground for statistical purposes. Addition on payment for extra work and tiffin expenses - CIT-A allowed claim - Held that:- The assessee has stated that late receipt of said payment from the Airlines, is a consistent practice over the year. As per the facts above, it seems that the sole reason for making disallowance is the suspicion of the Assessing Officer. The AO neither at the assessment stage nor at the remand report stage, proved that the details filed by the assessee were wrong. The bulk of the entire work claim has been reimbursement to the assessee by the Airlines. This is also important to note that for the financial year 2009-10 the assessee has an opening liability of ₹ 24,02,040/- for payment of extra work to her employees and the assessee has paid ₹ 20,78,040/-, out of the same to the employees during the financial year 2009-10 itself and this payment had not been doubted by the Assessing Officer but the Assessing Officer had disallowed the closing balance of outstanding extra work of ₹ 21,28,773/- which has no rational. These figures have been discussed by the Ld. CIT(A) also. Therefore, we are of the view that the order passed by the Ld. CIT(A) on this issue does not contain any infirmity. Therefore, we confirm the order passed by the Ld. CIT(A). Contribution towards ESI and PF paid beyond due date as envisioned in Section 43B - Held that:- The above issue is squarely covered by the Jurisdictional High Court, Calcutta in the case of M/s Vijay Shree Ltd. in (2011 (9) TMI 30 - CALCUTTA HIGH COURT ). It is jurisdictional High Court of the assessee. Therefore, we are of the view that employees’ share of contribution towards PF and ESI, if it is paid before filing of return of income then it would be a sufficient compliance of the Act. Accordingly, we dismiss the appeal of the Revenue.
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