Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 1471 - AT - Income TaxAdditions u/s 41(1) - Cessation of liability - Freezer Deposit considered as lapsed liability u/s 41(1) - HELD THAT:- As in assessee’s own case [2016 (11) TMI 1584 - ITAT COCHIN] by following the earlier Tribunal order, had held that addition u/s 41(1) is not warranted. The relevant finding of the Tribunal for assessment year 2011-2012. Disallowance of belated payment of employees’ contribution to PF & ESI - HELD THAT:- The assessee is claiming deduction of delayed remittance of employees’ contribution to PF and ESI, stating that the same has been deposited before the due date of filing return u/s 139(1) of the I.T. Act. However, the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited [2015 (9) TMI 560 - KERALA HIGH COURT] and in the case of Popular Vehicles & Services Private Limited v. CIT [2018 (8) TMI 133 - KERALA HIGH COURT] had clearly held that employees’ share of PF and ESI, which was not deposited within the due date under the respective Acts, is not an allowable deduction u/s 36(1)(va) of the I.T. Act. Therefore, following the judgments of the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited [2015 (9) TMI 560 - KERALA HIGH COURT] and Popular Vehicles & Services Private Limited [2018 (8) TMI 133 - KERALA HIGH COURT] we hold that since the employees’ contribution to PF and ESI was not deposited within the due date specified in the relevant Acts, the same cannot be allowed as a deduction u/s 36(1)(va). It is ordered accordingly.
|