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2021 (12) TMI 1165 - ITAT SURATBelated payment of employee's contribution to PF invoking provisions of sec. 36(1)(va) - HELD THAT:- We find merits in the submissions of the assessee, that the payment within grace should be allowed. Therefore, total amount to be allowed within grace period comes to ₹ 31,615/- ( ₹ 15,919 + ₹ 15,696) which are paid by the assessee within the grace period, therefore, addition to the extent of ₹ 31,615/- is hereby deleted and we direct the assessing officer to make the disallowance of the balance amount of ₹ 35,496/- (₹ 67,111- ₹ 31,615). Thus, ground no.1 raised by the assessee is partly allowed. TDS u/s 194C - non-deduction of TDS from payment of labour charges - assessee submitted before us that amendment in section 40(a)(ia) of the Act is retrospective in nature therefore disallowance under section 40(a) (ia) should be restricted to 30% of the impugned amount - HELD THAT:- We note that in subsequent judgment of the Hon'ble Supreme Court in the case of Shree Chaudhury Transport Company[2020 (8) TMI 23 - SUPREME COURT] held that amendment in section 40(a)(ia) of the Act is prospective in nature - Issue clearly in the affirmative i.e., against the assessee and in favour of the revenue that the payments in question have rightly been disallowed from deduction while computing the total income of the assessee-assessee. Disallowance of interest expenditure u/s 36(1)(iii) - HELD THAT:- As considering all these facts it is crystal clear that assessee has given interest free loan to Mr. Ajay Shah of ₹ 3,00,000/-, out of its interest free funds, therefore addition should not be made. Accordingly, the addition made by A.O. to the tune of ₹ 36,000/- is deleted. Addition u/s 68 - HELD THAT:- We note that assessee had furnished the details which would discharge the onus which lay on the assessee. It is not the case of the revenue that the partners of the assessee firm are fictitious. Therefore, addition sustained by ld CIT(A) is hereby deleted.
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