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2015 (7) TMI 861 - AT - Income TaxDisallowance u/s 43B - late payments of employees’ contribution to the PF fund - Held that:- The issue in dispute is squarely covered against the assessee by the decision of Gujarat Road Transport Corporation reported in [2014 (1) TMI 502 - GUJARAT HIGH COURT] wherein held that employees’ contribution if not paid within the due date provided in the PF and ESI Act then, deduction will not be admissible to the assessee. The view of the ld. Commissioner of Income Tax (Appeals) is in line with the hon’ble High Court’s decisions therefore, we do not find any merit in this ground of appeal.- Decided against assessee. Disallowance u/s 40(a)(ia) - amount of expenses on which Tax Deducted at Source (TDS) was not deposited into the Government account within due date - AO submitted that the disallowance be confirmed and it be excluded from the exemption of section 10B - Held that:- It is not in dispute that the disallowance is in respect of appellant's unit eligible for deduction under section 10 B. Since by disallowing expenses on account of non-deduction of TDS or not depositing TDS to government account in time, assessing officer only increased business profit. Such increased business profit is eligible for deduction under section 10 B, appellant is eligible for deduction under section 10 B for addition of expenses disallowed under section 40(a) (ia) of IT Act. Accordingly the disallowance of expense on account of default under TDs provisions will not affect appellant's taxable income. In view of this, the applicability of TDS provisions and disallowance under section 40 (a) (ia) is not discussed here. Once the expenses which are to be disallowed with the aid of section 40(a)(ia) then it will enhance the taxable income of the assesse which will fall in the eligible profit for exemption u/s. 10B.- Decided against assessee. Disallowance of donation given to flood victim collected from the employees’ salaries - CIT(A) deleted the addition - Held that:- A specific deduction was made from the salary and after collecting that amount it was given as a donation. The assessee has not claimed any deduction as such from its business profit, the amount collected from the employees’ salaries does not involve element of income in the hands of assessee because the assessee has only acted as a facilitator between the amounts collected vis-à-vis remitted to the flood victims. Therefore, ld. Commissioner of Income Tax (Appeals) has rightly deleted the disallowance..- Decided against assessee.
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