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2021 (10) TMI 915 - AT - Income TaxDisallowance u/s. 36(i)(va) - employees contribution to PF while processing return u/s. 143(1) - contribution paid beyond the due date prescribed under the ESI Act but before the due date prescribed u/s. 139(1) - Scope of amendment of section 43B - HELD THAT:- Hon'ble Karnataka High Court in the case of CIT Vs. Spectrum Consultants India Pvt. Ltd. [2014 (2) TMI 127 - KARNATAKA HIGH COURT] wherein it was held that the contributions, if paid before the due date prescribed u/s. 139(1) of the Act, the same is allowable u/s. 36(1)(va) of the Act since the provisions of section 43B of the Act override section 36(va). Also in the case of M/s. Essae Teraoka Pvt. Ltd. Vs. DCIT [2014 (3) TMI 386 - KARNATAKA HIGH COURT] supports the case of the assessee. There should not be any dispute that the decision rendered by the jurisdictional High Court is binding on all authorities below it. Hence, the Ld CIT(A) was not justified in placing reliance on the decision rendered by non-jurisdictional High Court, when there is a decision of jurisdictional High Court on the very same issue. An identical issue in the case of Nirmal Enviro Solutions Pvt. Ltd. [2021 (10) TMI 844 - ITAT BANGALORE] relating to assessment year 2018-19, wherein the Tribunal following the decision rendered by another coordinate bench in the case of the Continental Restaurant & Café Company Vs. ITO[2021 (10) TMI 843 - ITAT BANGALORE] has held that disallowance u/s. 36(1)(va) r.w.s. 43B of the Act cannot be made for assessment year 2018-19 - Thus we direct the A.O. to delete the impugned disallowance. - Decided in favour of assessee.
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