TMI Blog2015 (3) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... he end of the AO. Accordingly, we set aside the order of the AO and restore this issue to the file of the AO/DRP with a direction to decide the same afresh by duly considering the lease agreement, certificate given by the M/s IBM and any other information/explanations that may be furnished by the assessee. Disallowance of employees contribution to Provident Fund - Held that:- As the assessee has paid the amount before the end of the relevant financial year and hence the AO was not justified in disallowing the claim in view of the decisions rendered in the case of CIT V/s Ghatge Patil Transport Ltd [2014 (10) TMI 402 - BOMBAY HIGH COURT] and CIT V/s Hindustan Organics Chemicals Ltd reported in (2014 (7) TMI 477 - BOMBAY HIGH COURT). Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues: a) disallowance of lease payment; b) disallowance of employees contribution to Provident Fund; and c) rejection of claim for deduction of expenditure relating to reimbursement of deputed staff cost. 3. We heard the parties and perused the record. The first issue relates to disallowance of lease payment made to M/s IBM for taking computer on lease, treating the same as capital expenditure. The assessee had taken computers on lease from M/s IBM. In the books of account, the assessee treated the same as financial lease and accordingly it claimed only interest portion as expenditure in the profit and loss account. However, in the income tax computation, the assessee treated it as operating lease and accordingly claimed en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of the AO/DRP with a direction to decide the same afresh by duly considering the lease agreement, certificate given by the M/s IBM and any other information/explanations that may be furnished by the assessee. 5. The next issue relates to disallowance of employees contribution to Provident Fund. We notice that the AO has disallowed the claim on the reasoning that the assessee failed to pay employees contribution before the due date prescribed under the Provident Fund Act. 6. The ld. counsel submitted that the assessee has paid the amount before the end of the relevant financial year and hence the AO was not justified in disallowing the claim in view of the decisions rendered by the Jurisdictional High Court in the case of CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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