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2017 (5) TMI 1704 - AT - Income TaxDisallowance of expenditure pertaining to payment of ESI and EPF - HELD THAT:- Amount allowable and cannot be treated as income of Assessee. The case of Spectrum Consultants India (P.) Ltd., Vs CIT [2013 (7) TMI 414 - KARNATAKA HIGH COURT] held that amounts which were paid before the due date of filing of return are required to be allowed. The Hon’ble Karnataka High Court followed its earlier decision in the case of CIT vs Sabari Enterpirses [2007 (7) TMI 169 - KARNATAKA HIGH COURT] where the Divisional Bench of the Karnataka High Court after extracting Section 2(24)(x), Sec. 36(1)(viia) and Sec. 43B(b) of the IT Act, held that the contributions rendered by Assessee to EPF and ESI are allowable deductions, even though made beyond the stipulated period as contemplated under the mandatory provisions of Sec. 36(1)(viia) r.w.s 2(24)(x) of the IT Act and Sec 43B Case of CIT vs ALOM Extrusions Ltd.[2009 (11) TMI 27 - SUPREME COURT] has dismissed the Revenue appeals and accordingly those orders have become final. Respectfully following the same, since the amounts were paid much before the due date for filing return of income, A.O’s action in treating the same as income of Assessee cannot be supported. Accordingly, said addition is deleted. - Decided in favour of assessee.
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