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2019 (5) TMI 343 - AT - Income TaxAddition u/s 36(1)(iii) - assessee has not able to proved the nexus between interest free funds and interest free advances - HELD THAT:- The internal cash accrual of ₹ 87,84,446/- as profit and ₹ 7,62,94,157/- by way of depreciation during the year under consideration is also evident on record. During the assessment year 2011-12, the assessee has not given any advance to the land lords but in the earlier years advance of ₹ 25,89,060/- was paid out of the total interest free funds available with the assessee. Further the entire borrowing is term loan against capital assets, thus, the borrowing is used for the purpose of business and therefore, the question of disallowance does not arise in term of the ratio laid down in the matter of Taparia Tools Ltd-vs-CIT [2015 (3) TMI 853 - SUPREME COURT]. In that view of the matter, we find no justification of the addition made by the authorities below. Hence, the same is deleted. This ground of appeal is thus allowed. ESI & PF with regard to contribution by employee u/s 36(1)(va) - assessee has to pay the amount of employee’s contribution towards PF/ESI to the Government account within the due date specified in the concerned Act - HELD THAT:- The assessee has failed to credit the same within the stipulated time and in that view of the matter considering the judgment passed in the matter of CIT-vs- South India Corporation Ltd. [1999 (10) TMI 44 - KERALA HIGH COURT] as well as the judgment pronounced by the Jurisdictional High Court in the case of [2014 (1) TMI 502 - GUJARAT HIGH COURT] the revenue has disallowed the amount of Employees Contribution of ESI & PF to the tune of ₹ 1,89,774/- and added back to the total income of the assessee. No infirmity in such order passed by the authorities below hence assessee’s ground of appeal fails.
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