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2016 (5) TMI 925 - AT - Income TaxAddition on account of alleged delayed payment of PF - Held that:- We do not hesitate to hold that the employees' contribution to the EPF deposited by the assessee before the due date of filing the return, is an allowable expenses. Since, in the present case, the same is deposited before the due date of filing of the return the ground raised by the assessee is allowed. Payments for expenses in cash in violation of provisions of section 40(A)(3) - Held that:- The provisions of section 40A(3) of the Act have been framed in order to curb the transactions to be done in cash and in order to encourage the banking transaction. In fact, these provisions appear to us as 'in terrorem' in nature. We observe from the order of the lower authorities that no aspersion have been cast on the genuineness of these expenses. Therefore, we find ourselves in agreement with the argument of the learned counsel for the assessee that the addition will enhance the income earned from the undertaking, therefore, he is eligible for deduction under section 80-IB of the Act. In view of this, we direct the Assessing Officer to give the assessee the benefit of these additions, if the assessee is eligible for deduction under section 80-IB of the Act, since the issue was not in question before us, we are not aware whether the assessee is eligible for said deduction or not. - Decided in favour of assessee for statistical purposes.
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