TMI Blog2016 (1) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A)’s order. Thus we find no infirmity in the order of the ld. CIT(A) which is sustained on this issue - Decided in favour of assessee. - ITA No. 615/JP/2013 - - - Dated:- 1-1-2016 - Shri T. R. Meena, AM And Shri Laliet Kumar, JM For the Petitioner : Shri O.P. Bhateja, Addl. CIT -DR For the Respondent : Shri P.C. Parwal , CA ORDER Per T. R. Meena, AM The Revenue has filed an appeal against the order of the ld. CIT(A)-II, Jaipur dated 07-03-2013 for the assessment years 2008-09 raising therein grounds as under:- On the facts and in the circumstances of the case, the ld. CIT(A) has erred in:- (i) deleting addition of ₹ 6,14,017/- made by AO by way of disallowance of late deposition of employee s PF Contribution. (ii) deleting the addition of ₹ 9,18,000/- made by AO by way of disallowance of prior period expenses. 2.1 The Ground No. 1 of the Revenue is regarding deletion of addition of ₹ 6,14,017/- made by the AO by way of disallowance of late deposition of employee s PF contribution wherein brief facts of the case as per AO are that the assessee failed to deposit the amount of employee s contribution towards PF in certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue of a cheque or draft or by any other mode on or before the due date as defined in the Explanation below clause (va) of sub-section (1) of section 36, and where such payment has been made otherwise than in cash, the sum has been realised within fifteen days from the due date. 3.5 The employers made a representation to the Govt. that contribution to welfare fund is not allowable in case the same is paid after due date under the Employees Provident Fund even if the same is paid before due date of filing of return of income. By Finance Act, 2003, second proviso was omitted and the first proviso was also amended. The first proviso after amendment reads as under:- Provided that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub\x7f section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. 3.6 The Honb'le Apex Court in the of Alom Extursion Ltd. 319 ITR 306 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 298 ITR 141 and it also affirmed the decision of Hon'ble Calcutta High Court. The decision of The Hon'ble Bombay High Court in the case of CIT Vs. Pamwi Tissues Ltd. , 313 ITR 13 was reversed. The Hon'ble Delhi High Court in the case of CIT Vs. AIMIL Ltd. , 321 ITR 508 had an occasion to consider as to whether the Tribunal was correct in law in deleting the addition relating to the employees contribution towards PF and ESI made by the AO u/s 36(1)(v) of the Act. The Hon'ble Delhi High Court has mentioned that the Tribunal has taken contrary view and upheld the addition made by the AO. Before Hon'ble Delhi High Court in the case of CIT Vs. AIMIL Ltd. (supra) , the counsel of the revenue submitted as under. We are reproducing the submissions because the submissions before us are the same which have been considered by Hon'ble Delhi High Court. 11. Ms. Prem Lata Bansal, ld counsel for the revenue. Thus argued that the second proviso to Section 43B, as it stood at the relevant time, clearly mentioned that deduction in respect of any sum referred to in clause (b) shall not be allowed unless such sum has actually been paid in cash or by issuance of cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng year has decided the issue in favour of the assessee after observing as under:- 3.2 This issue has been decided by the Tribunal in the case of ITO vs Instrumentation Ltd., Kota (ITA No. 331/JP/ 2011 dated 05- 08-2011). It will be useful to reproduce para 4.2 and 4.3 of that decision. 4.2 The above referred issue stands decided against the revenue by the Tribunal in the case of Soma Block Prints (P) Ltd. in ITA No.1173/JP/2010 dated 28th April, 2011 for the assessment year 2007-08. It will be useful to reproduce the para 5.2 from the above decision. 5.2 This issue has been decided against the Revenue by the Tribunal in the case of M/s. Swastik Metal Casting Vs. ACIT (ITA No.964/JP/2010) vide order dated 20-04-2011. It will be useful to reproduce para 3.2 and 3.3 of the above referred order 3.2 The ld. CIT(A) held that the employees contribution to PF and ESI is not to be allowed as the same has not been paid within the stipulated time as provided in respective Act of PF and ESI. The ld. CIT(A) confirmed the action of the AO. 3.3 We have heard both the parties. Hon'ble Apex Court in the case of CIT vs Alom Extrusions Ltd., 319 ITR 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r period expenses wherein the AO observed that the assessee is a cooperative society and State Govt. undertaking and it is engaged in trading of oil seeds and manufacturing of edible oil. It has its units spread over at various places in the State of Rajasthan. The AO observed that assessee claimed prior period expenses of ₹ 9.18 lacs during the year in which the AO found that these expenses are not relating to the year under consideration and thus it is not allowable. Accordingly, the AO made a disallowance of ₹ 9.18 lacs. 3.2 The assessee preferred first appeal before the ld. CIT(A) who has deleted the disallowance of ₹ 9.18 lacs made by the AO by observing as under:- I have considered the facts of the case and gone through the submission of the ld. AR . It is seen that in the case of the Govt. organization, expenses are booked only after approval of various authorities. Since the approvals are received during this year, the expenses are current year expenses. Hon'ble ITAT Jaipur Bench is also regularly allowing such claim as held in the various cases referred by the A.R. supra. Considering all these facts and respectfully following the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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