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2016 (1) TMI 750 - ITAT AMRITSAR

2016 (1) TMI 750 - ITAT AMRITSAR - TMI - Addition made u/s 43B for late deposits of ESI and employees contribution to the PF - CIT(A) deleted the addition - Held that:- CIT(A) has relied upon the amendment to proviso of section 43B through Finance Act., 2003. We also find that it is a undisputed fact the dues were deposited before the due date of filing of return of Income Tax. Therefore, the learned CIT(A) has rightly deleted the addition and we do not find any infirmity in the same - Decided a .....

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revenue - ITA No. 303(Asr)/2014 - Dated:- 2-12-2015 - A. D. Jain, JM And T. S. Kapoor, AM For the Appellant : Shri R K Sharda, DR For the Respondent : Shri R K Gupta, CA ORDER Per T S Kapoor ( A. M ) This is an appeal filed by the Revenue against the order of CIT(A) dated 12.2.2014, for the Asst. Year 2010-11. 2. The Revenue has taken the following grounds of appeal. "(i) On the facts and circumstances whether the Ld. CIT(A) was right in deleting the addition made u/s 43B for late deposits .....

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es within the stipulated time." 3. At the outset, the learned DR in respect of grounds of appeal heavily relied upon the order of Assessing Officer and submitted that the learned CIT(A) has wrongly passed the order and therefore, the order of Assessing Officer should be upheld. 4. The learned AR, on the other hand, heavily relied upon the order of learned CIT(A) and also relied upon the various case laws as placed in paper book page 1 to 40. 5. We have heard the rival parties and have gone .....

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oyee's contribution to ESI which have not been deposited on or before the due date specified in the respective Acts. However, it is an admitted fact that such contribution of the employees have been deposited before the due date of filing of return of income. Further, section 43B of the Income Tax Act, 1961 stands amended and the employer's contribution if made before the due date of filing the return of income is now allowable. Now, it is also a fact beyond dout that the employers as we .....

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e jurisdictional Bench of Hon'ble ITAT, Amritsar in the case of Asst. Commissioner of Income Tax Range-II, Jalandhar vs. M/s Proxima Steel Forge P. Ltd.(Supra). In this case the Hon'ble ITAT has confirmed the action of CIT(A) for having deleted the addition made by the A.O in view of provisions of section 2(24)(x) read with sec. 36(1)(va) of the Income Tax Act, 1961. The Hon'ble ITAT has held that "Since the second proviso to sec. 43B which reads as follows-Provided further that .....

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before finishing of return of income as per sub-sec.(1) of sec. 139 of the Income Tax Act. In the present case, the due date for filing the return of income was 31.10.2004 and the payment of EPF was made before 31.10.2004 as evidence from chart in the facts of the case. As such, the assessee has made the payment within the due date as mentioned in the proviso to se. 43B of the Act and the assessee is entitled for deduction and cannot be treated as income of the assessee. Hence, the learned CIT( .....

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r the enactment under which the same were realized from employees and required to be deposited so that employers may not earn interest etc. in his own account and deprive the Govt. of the same. However, later the legislature appear to have realized that whenever such amount is deposited under the Govt. Treasury, in any case it cannot be said to be taxable income of the employer/assessee, and has to be deducted. This might be reason due to which the legislature omitted second proviso to sec. 43B .....

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sited by the assessee on account of provident fund deduction of its employees, in the Govt. account." Similar type of disallowance has already been deleted by me in order passed in the case of Jammu Rural Bank in appeal no.84/11-12 pertaining to assessment year 2009-10. Respectfully following the decision of jurisdictional Bench of ITAT, Amritsar the addition made by A.O. by treating employees's contribution to PF & ESI as income of the appellant in view of provisions of sec. 2(24)( .....

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n and we do not find any infirmity in the same, therefore, ground no.1 is dismissed. 6. Ground No. 2 and 3 relates to the grievance of revenue with the action of learned CIT(A) by which he had deleted the addition made by Assessing Officer on account of disallowance of interest paid to Sale Tax Department on account of delay of payment of tax. The leaned CIT(A) has recorded his findings in this respect in para 5.5 which is reproduced as below. "5.5 In respect of ₹ 30,03,418/- paid on .....

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