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2015 (2) TMI 947 - AT - Income TaxDisallowance of employees' contributions to ESI and PF - whether amounts of ₹ 1,14,309 and ₹ 17,137 towards Provident fund and ESI respectively to the account of the employees before the due date for filing of return of income and the same should be allowed under section 43B - Held that:- There is no dispute with regard to the delay in the remittance of the above amounts to the concerned authorities by the assessee, but it is the contention of the assessee that since such remittances have been made before the filing of the return of income, it is an allowable expenditure and no addition is called for. See CIT V/s. Sabari Enterprises [2007 (7) TMI 169 - KARNATAKA HIGH COURT] & CIT V/s. AIMIL Ltd. [2009 (12) TMI 38 - DELHI HIGH COURT] - Decided in favour of assessee. Disallowance u/s. 40(a)(ia) - Non deduction of TDS on payments to contractors - CIT(A) deleted the disallowance - Held that:- As decided in DCIT vs. M/s. Liquidz India Pvt. Ltd [2015 (2) TMI 890 - ITAT HYDERABAD] the impugned amendment to section 40(a)(ia) permits remittance of TDS to the Central Government account on or before the due date of filing return of income u/s. 139(1) of the Act is retrospective in nature. Thus as the assessee having deposited TDS amount before the due date of filing the return u/s. 139(1) no disallowance can be made by invoking the provisions contained u/s. 40(a)(ia) of the Act - Decided in favour of assessee. Estimated profit on cancelled sales and sales returns - Held that:- The internal control system in the bills do not permit any corrections and the only way is to cancel and enter again. The bills have to be cancelled in case the bills which are entered in one firm's name are going to another concern's name due to technical snag. Sometimes, the quantities were entered wrongly and the invoices have to be prepared again reflecting the correct quantities. Name of the dealer/customer if entered wrongly is to be rectified for preparing the invoice in the correct name. in the absence of any evidence to prove that the assessee had tampered the bills to suppress gross sales the contentions of Revenue cannot be accepted. Further, the assessee has prepared the reconciliation and table the CIT(A) has stated as follows: "Further, the appellant had also produced before the AO, copies-of individual cancelled bills along with copies of sales bills in support of the reconciliation statement. The very same reconciliation statement along with party-wise break up for cancelled bills which are filed before me are verified. The AO's rejection of appellant's explanation in this regard is not based on sound footing. - Decided in favour of assessee.
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