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2017 (4) TMI 252 - AT - Income TaxDelay in deposit by the assessee of the employees contributions towards PF and ESIC - Held that:- We are of the considered view that as a fall out of the amendment made to Section 43B with effect from vide Finance Act, 2003 which came into force with effect from 1st April 2004, now when the assessee is found to have deposited the employees contribution towards PF and other labour funds though beyond the stipulated time, but prior to the due date of filing of its return of income under Sec. 139(1), therein no disallowance with respect to the said amount would be called for in the hands of the assessee. - Decided in favour of assessee Disallowance made under Sec. 36(1)(iii)- Held that:- No scope for carrying out any disallowance of interest connected with the amount funded for OTS. That as regards the current amount outstanding in respect of VCCL Ltd. (excluding the amount) outstanding on account of OTS, we are of the considered view that in the absence of any material being placed on record by the Ld. DR, in order to persuade us to take a view otherwise for the reason that any new facts had emerged during the year under consideration, we are constrained to conclude that as stand covered from the findings of the lower authorities in the case of the assessee for the preceding years, as o nexus had been proved by the AO in respect of the current amount outstanding in respect of the aforesaid company, viz. VCCL Ltd. and the borrowed funds, therefore no disallowance as regards any part of the said amount is called for under Sec. 36(1)(iii) of the Act, in the hands of the assessee company. We thus in light of our aforesaid observations are of the considered view that the CIT(A) by way of a reasoned order had rightly deleted the addition/disallowance of ₹ 1,81,81,940/-.- Decided in favour of assessee Disallowance of interest pertaining to debts which were due to the assessee company - Held that:- We are of the considered view that as the issue pertaining to the disallowance of interest of ₹ 1,13,40,000/- as regards the debts due to the assessee company from M/s. ESSLON Synthetics Ltd. as conceded by the Ld. DR is covered in favour of the assessee in the backdrop of the earlier orders passed in the case of the assessee company, we therefore uphold the deletion of the addition/disallowance of interest of ₹ 1,13,40,000/- pertaining to the debts due from ESSLON Synthetics Ltd. Thus, the order of the CIT(A) of the aforesaid issue under consideration is upheld as such.- Decided in favour of assessee
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