TMI Blog2015 (12) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... ue for statistical purposes. Addition employees’ contribution to Provident Fund (P.F.) - CIT(A) deleted the addition - Held that:- This issue is directly covered in favour of the assessee by the decision of the Hon’ble Apex Court in the case of Vinay Cement reported in (2007 (3) TMI 346 - Supreme Court of India) wherein it has been held that statutory items like Provident Fund and ESI, if paid before the due date of filing the return of income have to be allowed irrespective of the fact whether the contributions related to the employee and employer. However, we are not able to verify from the materials available on record as to whether the provident fund remittances were indeed made before the due date of filing the return of income by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i M.Balaganesh, AM For The Appellant : None For The Respondent : Shri V.N.Purohit,FCA Shri H.V.Bhardwaj,ACA ORDER Per Shri M.Balaganesh, AM This appeal of revenue arises out of order of ld.CIT(A)-IV, Kolkata in Appeal No.174/CIT(A)-IV/08-09 dated 23.08.2011 for A.Y.2006-07 against the order of assessment framed u/s 143(3) of the I.T.Act, 1961 (herein after referred to as the Act ). 2. The first issue to be decided is as to whether the ld. CIT(A) is correct in directing the ld. AO to verify the certificate issued by the Tea Board for the subsidy paid to the assessee for allowance of claim of exemption u/s 10(30) of the Act. 2.1. The brief facts of the case are that the assessee is a grower and manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest of justice and fair play, this issue be restored to the file of the ld. AO to verify the certificate from Tea Board for the subsidies paid to the assessee during the assessment year under appeal and direct the ld. AO to grant exemption u/s 10(30) of the Act only to the extent of subsidies received during the year subject to production of certificate from Tea Board. Accordingly, this ground of appeal is allowed for statistical purposes. 3. The next issue to be decided in this appeal is as to whether the ld. CIT(A)is correct in deleting the addition made in the sum of ₹ 2,07,337/- towards employees contribution to Provident Fund (P.F.). 3.1. The brief facts of this issue is that the assessee had deducted P.F. from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the same is paid before the due date of filing of return of income, the deduction should be granted to the assessee. This ground of appeal is allowed for statistical purposes. 4. The next issue to be decided in this appeal is as to whether the ld. CIT(A) is correct in allowing deduction towards cess on green leaf by relying upon the Jurisdictional High Court in the case of AFT Industries Ltd case. 4.1. The assessee debited a sum of ₹ 16,07,688/- in its profit and loss account towards cess on green leaf. The ld. AO sought to disallow the same on the ground that it is related to 100% Agricultural activity. The ld.AO further stated that though the decision of the Jurisdictional High Court in AFT Industries reported in 270 ITR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural income. When by fiction the income is computed as an income under the Act, all deductions as are available both for the agricultural component and for the business component of the income are to be allowed as a natural corollary. Therefore, the entire amount paid as cess under the Agricultural Income-tax Act is eligible for deduction. Respectfully following the decision of the Jurisdictional High Court as stated supra, we dismiss this ground of the revenue. 5. The last issue to be decided in this appeal is as to whether the ld. CIT(A) is correct in allowing the entire claim of subsidy for the purpose of ascertaining the book profit u/s 115JB of the Act. 5.1. We have heard the ld. AR and perused the materials available on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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