TMI Blog2011 (3) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... r's then the claim of the assessee is to be allowed in the year when the tax deducted has been paid in the account of the treasury - Claim of expenditure allowed. Regarding deduction on account late payments of employees contribution of ESI & PF - Held that: - In view of decision of Supreme Court in Commissioner of Income-Tax Vs. Alom Extrusions Ltd. (2009 -TMI - 35073 - SUPREME COURT) the issue decided against the revenue. - 5 of 2011 - - - Dated:- 28-3-2011 - MR.JUSTICE ADARSH KUMAR GOEL, MR.JUSTICE AJAY KUMAR MITTAL, JJ. Present: Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant. AJAY KUMAR MITTAL, J. 1. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (hereina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowances amounting to Rs.1,14,140/- on account of interest paid to Mrs. Gargi Goel as the same pertained to the period prior to 31.3.2005 and Rs.16,18,632/- on account of late payment of ESI/EPF. The assessee filed appeal before the Commissioner of Income-Tax (Appeals) (for short the CIT(A) ) which was partly allowed on 9.12.2009 granting relief of Rs.4,33,117/- out of the total disallowance of Rs.16,18,632/-. Further appeal filed by the assessee was, however, accepted by the Tribunal vide order dated 22.4.2010 and the addition made by the assessing officer was deleted in toto. 4. We have heard learned counsel for the revenue who has challenged the findings recorded by the Tribunal deleting the addition made by the assessing officer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... geable under the heads profits gains of business or profession. The provisio to section 40(a)(ia) of the Act, however, provides that where tax has been deducted in any subsequent years and paid, then such expenditure is to be allowed as a deduction in the year in which such tax has been paid. The incidence of tax payments are recognized in the proviso itself. 8. In the light of the above said provisions, now we shall address the issue raised before us. The assessee had claimed interest expenditure relating to the period 1.4.2004 to 31.3.2006 during the period ending 31.3.2006, in view of the provisions of section 40(a)(ia) of the Act, the interest payable by the assessee to Smt.Gargi Goyal was eligible to tax deduction at source. Admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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