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2022 (6) TMI 473 - AT - Income TaxLate deposit of employees Provident fund/ ESIC contribution - Addition u/s 36(1)(va) r.w.s. 43B - ESIC/PF not having been paid before due date under the respective Acts - disallowance made by the CPC u/s 143(1) - HELD THAT:- The Supreme Court in the case Saurashtra Kutch Stock Exchange Ltd [2008 (9) TMI 11 - SUPREME COURT] has held that not following decision of the Supreme Court or the jurisdictional High Court would constitute a mistake apparent from record. As in case of Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT] has directly ruled on this issue against the assessee and has held that employees' contribution (PF/ ESIC) to specified fund will not be allowed as deduction u/s.36(1)(va) if there is delay in deposit as per the due dates mentioned in the respective legislation, in our view, the Department is bound to follow the decision of the jurisdictional High Court. Tax Audit Report furnished by the assessee also specifically gives the suggestion of disallowance under section 36(1)(va) of the Act i.e. due dates as prescribed under section 36(1)(va) of the Act and the actual dates of payment reported, thus clearly indicates the deviation which attracts such disallowance. A plain reading of section 143(1)(iv) of the Act also specifically states that that an adjustment can be made in respect of disallowance of expenditure/increase in income indicated an audit report but not taken into account in computing the total income of the assessee in the return of income. CIT(A) has not erred in facts and law in coming to the conclusion that disallowance made by the CPC u/s 143(1) of the I.T. Act on account of appellant's failure to pay the employee's contribution of PF/ESI within the prescribed due dates as per section 36(1)(va) is strictly in accordance with law. - Decided against assessee.
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