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2019 (1) TMI 788 - AT - Income TaxMAT - Addition on account of Capital Reserve while computing the book profit of the assessee-company u/s 115JB - Held that:- As rightly pointed out by the assessee, the adjustment on account of the amounts carried to any reserves, by whatever name called is permissible as per Clause (b) of Explanation (1) to Section 115JB only if such amounts are debited to the Profit & Loss Account as clearly provided in Explanation (1) to Section 115JB and since the amount in question transferred to the Capital Reserves directly by the assessee-company was not debited to the Profit & Loss Account as clearly mentioned by the AO himself in the assessment order, we find merit in the contention for the assessee that the adjustment made by the Assessing Officer while computing the book profit under section 115JB was not permissible even as per Clause (b) of Explanation (1) to section 115JB. D.R. has not been able to dispute this position, which is clearly evident from the clear language used in Explanation (1) to Section 115JB. No merit in the case of the Revenue on this issue and upholding the impugned order of the CIT(Appeals) deleting the addition/adjustment made by the Assessing Officer on account of Capital Reserve while computing the book profit of the assessee under section 115JB. Disallowance of employees contribution to Provident Fund/Employees State Insurance (ESI) paid by the assessee beyond the due dates prescribed in the respective statute - Held that:- Both the sides have agreed that this issue is squarely covered in favour of the assessee, inter alia, by the decision in the case of Vijay Shree Limited (2011 (9) TMI 30 - CALCUTTA HIGH COURT), wherein following the decision in the case of Alom Extrusion Limited [2009 (11) TMI 27 - SUPREME COURT] that the amount paid on account of employees contribution before the due date of filing the return of income for the relevant year could not be disallowed as per the amendment made to section 43B by the Finance Act, 2003. Respectfully following the said binding precedent, we uphold the impugned order of the CIT(Appeals) deleting the addition made by the Assessing Officer by way of disallowance of belated payment of employees contribution to P.F/ESI.
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