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2011 (4) TMI 730 - AT - Income TaxDeduction under section 80-IB - Disallowance - under section 2(24)(x) read with section 36(va)- employees contribution to PF was not deposited within due date - employees' contribution to PF, which assessee has to collect from its employees and to deposit with the PF authorities within the due date prescribed. In case, this is not paid within the due dates the same will be disallowed. Here before us, the issue is not whether it is to be allowed in view of the payment made within the due date or within the due date of filing of return but the issue is whether this amount disallowed, the assessee is eligible for deduction under section 80-IB of the Act or not. We are of the considered view that this is not an item of manufacturing account or P&L Account and it is neither a profit from eligible business nor a disallowance of expenditure pertaining to the assessee's eligible business. Hence, the deduction under section 80-IB(1) of the Act cannot be allowed. Hence this issue of the revenue's appeal is allowed Disallowance of contract payments under section 194C - Under section 40(a)(ia) as tax was not deducted at source - TDS deducted is not deposited before the expiry of time prescribed under section 200(1) of the Act, thereby, Assessing Officer disallowed by invoking provisions of section 40(a)(ia) of the Act - find that these contract payments are part of Profit and Loss Account and expenditure is disallowed by Assessing Officer in the absence of non-deposit of TDS within the due date - It is to be mentioned that neither the Assessing Officer nor CIT(A) has discussed why this item is not eligible for deduction under section 80-IB or why it is eligible - let the Assessing Officer consider this issue in the light of the allowance of deduction of this expenditure as the assessee has made payment of this TDS within the due date of filing of return of income and in case, the assessee is not allowed deduction of this expenditure by invoking the provisions of section 40(a)(ia) of the Act, he will go into the eligibility of deduction under section 80-IB of the Act. Hence, this issue of the revenue's appeal is set aside to the file of the Assessing Officer.
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