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2016 (6) TMI 734 - AT - Income TaxDisallowance of contribution made to Trust - whether an allowable business expenditure? - proof of direct business nexus - Held that:- Similar orders were passed by the Tribunal for the assessment year 2009- 10 and 2010-11. There is no change of circumstances brought to our notice after passing of the orders referred hereinabove or no change in law has been brought to our notice by either of parties. We have heard the rival contentions and perused the material available on record. The issue in question is covered in favour of the assessee by the earlier decisions of the Coordinate Benches in assessee’s own case. Respectfully following the earlier decisions of the Coordinate Benches, the contribution - made by the assessee to SPARSH Trust is accordingly allowed as an eligible business expenditure under section 37(1) of the Act Disallowance of expenditure u/s 36(1)(va) r.w.s. 2(24)- depositing the employee’s contribution to PF and ESI - Held that:- Admittedly the contribution was deposited by the assessee with the Provident fund on the next day immediately it was due. The Provident fund Act by which the deposit of the contribution by the assessee within the grace period of 5 days from the date when it becomes due. The ld. CIT(A) has given the finding that the payments of ESI & PF were made before the due date of filing of income tax return. In light of decision of Hon’ble Rajasthan High Court in the case of CIT vs. State Bank of Bikaner and Jaipur and Jaipur Vidhyut Vitran Nigam Ltd. [2014 (5) TMI 222 - RAJASTHAN HIGH COURT ] we find no infirmity in the decision of Ld CIT(A) which is hereby deleted. Appeal Decided partly in favour of revenue
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