TMI Blog2016 (1) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid interest on Sale Tax dues for delay in deposit of the same which is a compensatory in nature and is nowhere in the form of penalty. The learned CIT(A) has already confirmed the amount representing penalty. In view of the above, we do not see any infirmity in the order of learned CIT(A) - Decided against 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 circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1,71,512/- on account of employess's contribution to PF ₹ 68357/- on account of employee'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 well as employees contribution to any Fund have to be deposited together and not in isolation. Now when section 43B stands amended the section 36(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome 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(A) was justified in allowing the ground of the assessee. The Hon'ble ITAT placed reliance on the judgment of Hon'ble Uttrakhand High Court in the case of CIT vs. Desh Rakshak Aushdhalaya reported in (2008) 218 CTR 7, wherein it has been held that: Held, when sec. 43B was incorporated in the Income Tax Act, 1961 and contained the second proviso. The intention of the legislature ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees's contribution to PF ESI as income of the appellant in view of provisions of sec. 2(24)(x) read with sec. (36)(va) of the Income Tax Act, 1961 is hereby deleted as such contribution amounting to ₹ 2,39,869/- has been deposited before the due date of filing of return of income. We find that the learned 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, therefore, ground no.1 is dismissed. 6. Ground No. 2 and 3 relates to the grievance of revenue with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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