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2019 (6) TMI 1685 - AT - Income TaxDelayed payment of employees contribution to Provident Funds and ESI beyond due dates prescribed under PF Act and ESI Act - HELD THAT:- Assessee which is a company engaged in the business of manufacture and distribution of Jockey brand inner garments claimed deduction which was employees contribution to ESI & PF, which was paid beyond the due date as per the relevant governing contribution to PF & ESI, but was nevertheless paid on or before the due date for filing of return of income u/s. 139(1) - There is no dispute that if the employees contribution to PF & ESI is paid on or before due date u/s. 139(1) of the Act, then there can be no disallowance u/s. 43B of the Act and it was so held in the case of CIT v. Sabari Industries [2007 (7) TMI 169 - KARNATAKA HIGH COURT] DR, however, placed reliance on a contrary decision rendered in the case of CIT v. Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT] The decision of the Hon’ble High Court of Karnataka which is the jurisdictional High Court is to be followed by the Tribunal. Consequently, we find no merit in the relevant ground No.1 of appeal of the revenue. Deduction u/s. 80JJAA which has been wrongly referred to as 115JJAA - HELD THAT:- We find that in AY 2007-08 identical issue came up for consideration before the Tribunal [2015 (7) TMI 1117 - ITAT BANGALORE] and the Tribunal in its order [2015 (7) TMI 1117 - ITAT BANGALORE] allowed similar claim of the Assessee. The tribunal of the aforesaid order held that once a new workmen is employed in a previous year and works for 300 days in that year the additional wages paid to him is to be allowed as deduction at 30% of the additional wages paid to him in that year should be allowed as deduction for three Assessment years and that he need not be in employment for the subsequent period for claiming deduction u/s.80JJAA - It was held that once the deduction is allowed in the first year then, 30% of such additional wages is allowable as deduction in each of the subsequent two years. In Assessee’s own case [2016 (12) TMI 1887 - ITAT BANGALORE] the Tribunal remanded identical issue to the AO for fresh consideration. Similar order was passed in AY 2010-11 [2016 (7) TMI 1012 - ITAT BANGALORE]. Since in the later orders on identical issue, the Tribunal has remanded to the AO for fresh consideration of the issue, we deem it fit to restore this issue to the AO for fresh consideration in accordance with law. Consequently, Gr.No.2 is treated as allowed for statistical purpose.
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