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2020 (11) TMI 698 - AT - Income TaxAddition being the amount of PF and ESI u/s 36(1)(va) - amount remitted to the concerned accounts before the due date of filing the return of income - HELD THAT:- In the instant case, there is no dispute that the amounts-in-question with regard to EPF and ESI were remitted to the concerned accounts before the due date of filing the return of income u/sn 139(1). This, the Tribunal has consistently taken a view that if the PF and ESI are remitted to the respective accounts, the same are required to be allowed as deduction. See KLR INDUSTRIES LTD., HYDERABAD [2015 (7) TMI 684 - ITAT HYDERABAD] No disallowance could be made in respect of employees contribution of PF and ESI if the same are deposited before the due date of filing the return of income. Accordingly, we set aside the order of Ld.CIT(A) and delete the addition made by the AO. The appeal of the assessee on this ground is allowed. Addition proportionate expenditure attributing to non-taxable units - HELD THAT:- Assessee is having four units, for which the income and expenditure has been allocated unit-wise and head-wise. The assessee also stated that separate books of accounts are maintained for each unit and if separate books are maintained, there is no case for disallowance of expenditure on estimation basis. AR also submitted that all the expenditure was distributed among all the units proportionately and there is no case of making estimated disallowance relating to non-taxable unit. AO neither rejected the books of accounts nor made out case of suppression of taxable income, or inflation of expenditure in taxable units. We hold that there is no case for making the addition on estimation basis, hence, we set aside the orders of lower authorities and delete the additions made by the AO. The appeal of assessee on this ground is allowed. Set-off of loss before allowing the deduction u/s 10A - HELD THAT:- In the case of CIT Vs. Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT] it was held that the profits and gains of business of eligible undertaking has to be made independently and immediately after the stage of determination of its profits and gains and it is premature to apply the provisions of Section 70, 71 and 72 of the Act at the stage of determination of profits and gains of the business, thus held that the deduction u/s.10A of the Act is to be allowed from the gross total income of eligible undertaking but not at the stage of computation of total income. We direct the AO to allow the deduction at the stage of computation of gross total income but not under Chapter-VI for arriving the total income, accordingly we set aside the order of the CIT(A) and remit the matter back to the file of the AO for limited purpose of computing the deduction u/s.10A of the Act as per the order of the Hon’ble Apex court supra. Accordingly, the appeal of the assessee on this ground is allowed for statistical purposes.
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