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2016 (2) TMI 751 - AT - Income TaxDisallowance in respect of contribution to the employees PF & ESI u/s.43B - Held that:- As decided in M/s. Farida Shoes Pvt. Ltd. [2016 (2) TMI 376 - ITAT CHENNAI] as the assessee had remitted the employees contribution beyond the due date for payment, but within the due date for filing the return of income, thus no disallowance required - Decided in favour of assessee Disallowance made u/s.40(a)(ia) - non deduction of tds - payments of Commission, contract payments, professional charges, shipping and forwarding expenses, freight on exports, clearing and forwarding charges - Held that:- Similar issue came consideration before this Tribunal in the case of Shri N.Palanivelu Vs. ITO, Salem reported in [2015 (10) TMI 1415 - ITAT CHENNAI ] wherein it was held that the disallowance under section 40(a)(ia) of the Act was not applicable, when there was no outstanding balance at the end of the close of the previous year. The assessee failed to bring details of outstanding expenses or schedule of sundry creditors showing whether the amount was outstanding at the end of the close of the previous year in the name of the party or outstanding expenses. The Assessing Officer was to verify the matter and examine afresh. If no amount was outstanding at the close of the previous year in respect of the expenses either as outstanding expenses or as sundry creditors, the amount could not be disallowed. Hence the amount outstanding as payable at the end of the close of the Financial year i.e. 31st March only be disallowed by applying the provisions of Sec.40(a)(ia) of the Act. Accordingly we direct the ld. Assessing Officer to disallow the only amount which is outstanding at the end of the close of the previous year relevant to the assessment year and accordingly for limited purpose to verify the outstanding amount towards impugned amount at the end of the close of the previous year relevant to the assessment year, we remit the issue back to the file of the ld. Assessing Officer.
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