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2015 (2) TMI 249 - AT - Income TaxDisallowance of interest expenses - CIT(A) deleted addition of ₹ 16,03,831/- out of interest expenses - Held that:- AO has given finding that the assessee had given a total loans and advances amounting to ₹ 1,60,90,948/- on which the assessee has not charged interest on some of the advances. Moreover, the finding that the assessee was having sufficient interest-free funds is also not correct. It is pointed out by the AO that the advance given to M/s. M.P.Builders in connection with advance for capital goods. Similarly, other advances are amounting to ₹ 93,42,143/- on which no break-up is given. Under these facts, we are of the considered view that the ld.CIT(A) was not justified in deleting the disallowances, therefore, the order of the ld.CIT(A) on this issue is set aside and the disallowances made by the AO are hereby confirmed. - Decided in favour of Revenue. Addition made on account of discrepancy in AIR - CIT(A) deleted addition - Held that:- Ld.CIT(A) while deleting the addition as it was incumbent upon the assessee to reconcile the discrepancy, if any. We find that the assessee has grossly failed to do so, therefore, the order of the ld.CIT(A) is set aside and the finding of the AO is confirmed. - Decided in favour of Revenue. Disallowance of PF and ESI expenses u/s.43B - Held that:- Following the judgement of CIT vs. Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT] wherein considering section 36(1)(va) of the Income Tax Act, 1961 read with sub-clause (x) of clause 24 of section 2, it is held that with respect to the sum received by the assessee from any of his employees to which provisions of sub-clause (x) of clause (24) of section (2) applies, the assessee shall be entitled to deduction in computing the income referred to in section 28 with respect to such sum credited by the assessee to the employees’ account in the relevant fund or funds on or before the "due date" mentioned in explanation to section 36(1)(va). Consequently, it is held that the learned tribunal has erred in deleting respective disallowances being employees’ contribution to PF Account / ESI Account made by the AO as, as such, such sums were not credited by the respective assessee to the employees’ accounts in the relevant fund or funds (in the present case Provident Fund and/or ESI Fund on or before the due date as per the explanation to section 36(1)(va) of the Act i.e. date by which the concerned assessee was required as an employer to credit employees’ contribution to the employees’ account in the Provident Fund under the Provident Fund Act and/or in the ESI Fund under the ESI Act. - Decided in favour of revenue.
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