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2022 (1) TMI 681 - AT - Income TaxSuppressed production of pan masala (containing tobacco) - HELD THAT:- Lower authorities had rightly worked out the suppressed production of the assessee company at 3,44,85,310 pouches by adopting the deemed production on the basis of which excise duty was charged on it. In fact, as observed by us hereinabove, in case the assessee had any reason with him as to why the suppressed production was not to be determined on the aforesaid basis, as was specifically brought to his notice by the A.O, then, it was open for him to have come forth with an explanation as regards the same, which we are afraid he had not done. On the basis of the aforesaid facts, we are of a strong conviction that the CIT(A) had rightly upheld the suppressed production as had been determined by the A.O. We, uphold the order of the CIT(A) who in our considered view had rightly had confirmed the addition of ₹ 3,44,85,310/- i.e 3,44,85,310 pouches @ Re.1/- per pouch as made by the A.O towards suppressed production of pan masala (containing tobacco) - Ground of appeal No. 1 raised by the assessee is dismissed. Disallowance u/s 2(24)(x) r.w sec. 36(1)(va) - disallowance of the delayed deposit of the employee’s contributions towards provident fund - amount was deposited before the “due date’ of filing of its return of income as provided in Sec. 139(1) - HELD THAT:- We are of the considered view that the issue as to whether or not the employees contribution to welfare funds would fall within the scope and domain of Sec. 43B of the Act, is covered by the judgment of the Hon’ble High Court of Bombay in the case of CIT Vs. Hindustan Organic Chemicals Ltd [2014 (7) TMI 477 - BOMBAY HIGH COURT] We are of the considered view that no distinction is to be drawn between the employers as well as employees contribution to PF and ESI as both are covered u/s 43B - We, thus, in terms of our aforesaid observations vacate the disallowance made by the A.O qua the delayed deposit of the employees contributions towards Provident Fund by the assessee company. The “additional ground of appeal” raised by the assessee is allowed in terms of our aforesaid observations.
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