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2022 (12) TMI 446 - AT - Income TaxDisallowance u/s. 14A - earning of exempt income - HELD THAT:- Uncontroverted facts at the end of both the parties are that during both the years assessee has not earned any exempt income. Respectfully following the settled judicial precedents as consistently held in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT], Reliance Chemotex Industries Ltd. [2022 (2) TMI 1309 - CALCUTTA HIGH COURT] and recent judgment Era Infrastructure India Ltd.[2022 (7) TMI 1093 - DELHI HIGH COURT] hold that in case there no exempt income is earned during the year, provisions of section 14A of the Act cannot be invoked and, therefore, the disallowance made u/s. 14A of the Act are deleted - Decided in favour of assessee. Disallowance of additional depreciation claimed u/s. 32 - assets purchased and put to use for a period less than 180 days in the preceding previous year - HELD THAT:- We find that similar issue came up for adjudication before this Tribunal in the case of National Engineering Industrial Ltd. [2021 (12) TMI 1130 - ITAT KOLKATA] and the issue was decided in favour of the assessee - Thus we allow the remaining 50% claim of additional depreciation at Rs.57,84,200/- made by the assessee. Thus, finding of the Ld. CIT(A) is reversed. Ground No. 4 raised by the assessee is allowed. Disallowance of employees’ contribution towards PF & ESI - HELD THAT:- We find that recently in Chekmate Services Pvt. Ltd.[2022 (10) TMI 617 - SUPREME COURT] has settled the issue holding that if the employees’ contribution towards PF & ESI is not deposited by the employer before the due date as prescribed under the relevant Act governing PF & ESI then strict compliance has to be made with regard to sec. 36(1)(va) of the Act read with section 2(24) of the Act and such sum shall be treated as income of the employer and Hon’ble Court further held that for such employees’ contribution provision of section 43B of the Act cannot be applied. Since in the instant case the alleged sum has been deposited after the due date prescribed under the PF Act, we fail to find any merit in the ground raised by the assessee and confirm the finding of Ld. CIT(A) disallowing the sum - Ground raised by the assessee is dismissed. Claim of deduction u/s. 80JJAA - AO only allowed the claim for 30% of the additional wages paid during the year but did not allow the claim of eligible deduction for previous assessment years - HELD THAT:- We fail to find any merit in the said findings of the Ld. AO because he has partly accepted the claim of deduction but the deduction which has been claimed for AY 2011-12 and 2012-13 and stands allowed by the revenue in the past and the assessee was eligible for such deduction for subsequent two assessment years as per the provisions section 80JJAA - In case the AO has denied the total deduction u/s. 80JJAA of the Act for incorrect report furnished by the assessee then situation may have been different but in the instant case on the basis of the said report part of the claim has been allowed and part of the claim has been denied which in our considered opinion was not correct on the part of lower authorities. We are of the considered view that for such minor technical defect, which in real sense is not defect since the said audit report has given more clarity to the year wise deduction claimed u/s. 80JJAA of the Act since it constitutes the figure of 30% of additional wages for current year and if eligible than for preceding two years also. Thus, we hold that assessee is eligible for deduction u/s. 80JJAA - Decided in favour of assessee.
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