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2012 (7) TMI 44 - ITAT, DELHIDisallowance of salary paid - AO noticed that assessee company has paid huge salary to the ladies who are relatives of Directors / CEO - Held that:- Except the oral statement that the services were rendered by this four relatives of the Directors, no other material is placed which reveal that any services were rendered by these persons to the assessee - as assessee failed to justify the reasonableness of salary payments made, the additions need to be made - against assessee. Disallowance of 100% depreciation of mobile phones - A.O. allowed depreciation @ 15% - Held that:- As the items which are entitled to 100% depreciation are specifically mentioned in the Income Tax Act/Rules and since assessee has failed to show any provision in the Rules related to 100% depreciation is justified on the mobile phones they can be allowed depreciation only at the rates applicable to plant and machinery - against assessee. Disallowance on account of provident fund being employees’ contribution paid before the due date of filing the return of income - Held that:- As decided in CIT vs. AIMIL Limited [2009 (12) TMI 38 (HC)]that as soon as employees' contribution towards PF or ESI is received by the assessee by way of deduction or otherwise from the salary/wages of the employees, it will be treated as 'income' at the hands of the assessee and on making deposit with the concerned authorities, the assessee becomes entitled to deduction under the provisions of s. 36(1)(va) - if the employees' contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Acts permit the employer to make the deposit with some delays - Insofar as the IT Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed - Since the amount has been paid prior to the date of filing the return ground of assessee is allowed.
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