TMI Blog2014 (8) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had deposited employees contribution towards Provident Fund and ESI after due date as prescribed under the relevant Act but before the due date of filing of return under the Income Tax Act, no dis-allowance could be made in view of the provisions of section 43B as amended by the Finance Act, 2003. - Tribunal has been consistently following the view taken by the Hon'ble Delhi High Court. Accordingly, we hold that the assessee is entitled to claim expenditure on employee’s contribution towards ESI and Provident Fund for both the AYs. The assessee had deducted tax at source on various dates starting from March, 2008 to July, 2008 for the period relevant to AY.2008-09 on payment of rent and labour charges. But the same was depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of CIT(Appeals) in confirming dis-allowance of contribution towards Employee s Provident Fund and ESI. The Revenue in its appeal has assailed the order of CIT(Appeals) in deleting the disallowance made u/s.40(a)(ia) of the Income Tax Act, 1961 (herein after referred to as the Act ) on account of delay in deposit of TDS amount. 2. The brief facts of the case are: The assessees is engaged in manufacturing of power distribution transformers and allied equipments. For the AY.2008-09, the assessee filed its return of income on 29-10-2008 declaring income of ₹ 4,86,85,103/-. During scrutiny assessment proceedings, the Assessing Officer observed that there is delay in remitting employee s contribution of ESI and PF. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the assessee submitted that the assessee had deposited employee s contribution towards Provident Fund and ESI for both the AYs, before the due date of filing of return. The assessee had complied with the provisions of the Act, thus the dis-allowance made by the authorities below is un-sustainable. In order to support his contentions, the ld.Counsel for the assessee placed on record a copy of the order of Tribunal in ITA No.2119/Mds/2011 in the case of JCIT Vs. M/s.S.M.Apparels(P) Ltd., decided on 05-04-2013. On the issue raised by the Revenue in its appeal, the ld.Counsel supported the findings of the CIT(Appeals) on the issue of dis-allowance u/s.40(a)(ia). Further to buttress his arguments, the ld.Counsel placed reliance on the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited employees contribution towards Provident Fund and ESI after due date as prescribed under the relevant Act but before the due date of filing of return under the Income Tax Act, no dis-allowance could be made in view of the provisions of section 43B as amended by the Finance Act, 2003. The decision of the Hon'ble Delhi High Court has been followed by the co-ordinate bench of the Tribunal in the case of JCIT Vs. M/s. S.M. Apparels(P) Ltd.,(supra). The Tribunal has been consistently following the view taken by the Hon'ble Delhi High Court. Accordingly, we hold that the assessee is entitled to claim expenditure on employee s contribution towards ESI and Provident Fund for both the AYs. Accordingly, both the appeals of the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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