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2019 (4) TMI 621 - ITAT AHMEDABADDisallowance of payment towards Employee’s Contribution u/s 43B - payment not deposited in the relevant fund on or before the due date - HELD THAT:- This issue has been settled by the Hon’ble jurisdictional High Court in two occasions, viz. in the case of Gujarat State Road Transport Corporation Ltd. [2014 (1) TMI 502 - GUJARAT HIGH COURT] and M/s.Checkmate Facility & Electronics Solutions P.Ltd. Vs.DCIT [2018 (10) TMI 994 - GUJARAT HIGH COURT] wherein it is held that the employees’ contribution to the Employees’ Provident Fund (EPF)/ Employees’ State Insurance Corporation (ESIC) deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction under section 43B of the Act, even if deposited before the due date of filing the tax. Therefore, there is no merit in this ground of appeal assessee. Addition being expenses incurred on software up-gradation of computers - revenue or capital expenditure - HELD THAT:- As decided in assessee's own case assessee has incurred expenditure to the extent of 60.93% of the value of the machinery in the AY 2010-11 and 31.58% in A.Y.2011-12, meaning thereby, by way of this method, almost 92% expenditure were incurred in two years on the value of the plant & machinery. It amounts to replacement. CIT(A) in this background has rightly observed that other companies in similar line were incurred expenditure to the extent of 2% to 6%, whereas the assessee has incurred expenditure at 43%. CIT(A) rightly upheld disallowance of expenditure partly by treating it in the capital field. - Decided against assessee
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