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2015 (10) TMI 244 - AT - Income TaxDisallowance of claim of deduction u/s.36(1)(va) - late payment of employee’s contribution towards ESIC though the same was paid before the due date of the return of income - Held that:- It is an admitted fact that the assessee in the instant case has deposited the employees contribution to ESIC after the due dates as per provisions of the ESIC Act. However, it is very clear from the chart that the employees contribution to ESIC fund were made much prior to the due date of filing of the return of income. We find the issue stands covered in favour of the assessee by the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Ghatge Patil Transport Ltd. reported in [2014 (10) TMI 402 - BOMBAY HIGH COURT] wherein it has been held that the decision of the Supreme Court in Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] applies to employees’ contribution as well as employer’s contribution and therefore are covered under the amendment to section 43B of the I.T. Act, 1961. Since the assessee in the instant case has admittedly deposited the contributions before the due date of filing of the return of income, therefore, no disallowance is called for u/s.36(1)(va) r.w.s. 2(24)(x) warranted - Decided in favour of assessee. Disallowance of claim proportionate interest on the belief that interest bearing funds were used for extending interest free loans and advances for other than business purpose - Held that:- Since in the instant case it is an admitted fact that no disallowance was made by the AO on account of such interest free advance to the above 4 parties, therefore, it will not be equitable on the part of the revenue to take a different stand now in respect of the amounts which were the subject matter of previous years’ assessment. We accordingly set aside the order of the CIT(A) and direct the AO to delete the disallowance made. See Commissioner Of Income-Tax Versus Sridev Enterprises [1991 (1) TMI 52 - KARNATAKA High Court ] - Decided in favour of assessee.
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