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M/s. Teck Bond Laboratories Pvt. Ltd. Versus. Tax, Circle 2 (3) Hyderabad

Disallowance of contributions of the employees towards ESI & PF - Held that:- As it is stated by the learned Counsel for the assessee that the payment was made before the date of filing of the return of income by the assessee. Further, we find that this issue is also covered by the judgment of the Hon'ble Supreme Court in the case of Alom Extrusion, reported in (2009 (11)27 - SUPREME COURT ) wherein it has been held that both the employees as well as employers contribution are allowable as deduc .....

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addition made by the AO u/s 143(3) of the Act. The assessee has raised the following 7 grounds of appeal:- 1. The order of the learned CIT(A) is erroneous both on facts and in law and also perverse in not following the judicial pronouncements. 2. The learned CIT(A) erred in observing that the appellant has not responded to the AO during remand proceedings without giving an opportunity to the assessee to find out the reasons for such failure. 3. The learned CIT(A) deprived the assessee of explain .....

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f the investors including their bank accounts thereby demonstration their identity and the mode of investment through banking channel discharging the onus that lies on him and thereby erred in confirming the addition of ₹ 53,68,000made u/s.68 being share application money. 5. The learned CIT(A) erred in confirming the disallowance of ESI & P.F. of ₹ 3,84,344 following the decision of Gujarat High Court in spite of contrary decision of other High Court which is in favour of assess .....

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o adjudication. 3. As regards Grounds No.2 & 3, the assessee s contention is that the assessee was not given sufficient opportunity of hearing during the remand proceedings to present his case. However, while going through the order of the CIT (A), we find that the assessee was given several opportunities to explain his case and also to produce relevant parties to prove the investment made by them in the assessee company. However, the assessee could not produce the same. In view of the same, .....

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the extent of ₹ 1,12,94,418. The assessee also submitted copies of the confirmation letters of the share applicants. AO asked the assessee to furnish copy of the bank a/c statements along with copies of the I.T. returns of the said parties in order to prove their creditworthiness. Assessee submitted the copies of the bank statement along with the copies of the returns of income in respect of some of the share applicants. However, with regard to 6 parties, the total of whose share applicat .....

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d credits u/s 68 of the Act and added it to the total income and brought it to tax. Further, he also observed that the assessee company, during the course of assessment proceedings, submitted that it has paid P.F contribution to the employees belatedly for the months of June to September, October, December 2009 and upto February, 2010, amounting to ₹ 3,48,344. Since the same was paid well beyond the due date, the AO added it also to the total income of the assessee. On similar ground, an a .....

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c which is part and parcel of the reserves. AO noticed that the assessee has claimed depreciation on factory building @10% without reducing the subsidy received and claimed depreciation on the entire value of the asset. Therefore, he disallowed the excess claim of depreciation by reducing 10% of depreciation on the factory building and added it to the total income of the assessee. Aggrieved by this addition, assessee preferred an appeal before the CIT (A), who confirmed the order of the AO. Furt .....

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the orders of the authorities below. 6. Having regard to the rival contentions and the material on record as well as the documents filed by the assessee, we find that the assessee had opening balance of share money and the shares were allotted to the respective parties during the relevant A.Y. This is evident from the balance sheet as on 31.03.2010 at page 76 of the paper book wherein the closing balance of share application as on 31.03.2010 was ₹ 3,50,005. Further, we also find that the .....

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oyees towards ESI & PF, we find that this issue is covered in favour of the assessee by the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation (223 Taxman 0398 (2014). It is stated by the learned Counsel for the assessee that the payment was made before the date of filing of the return of income by the assessee. Further, we find that this issue is also covered by the judgment of the Hon'ble Supreme Court in the case of Alom Extr .....

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ordinate Bench of this Tribunal at Visakhapatnam in the case of Sasisri Extractions Ltd. Vs. ACIT (2010) 122 ITD 0428. The learned Counsel for the assessee submitted that the assessee herein is also granted subsidy by virtue of the same G.O Ms. No.117, Ind. & Comm. (FR) Deptt. Dated 17.03.1993 as in the case of Sasisri Extractions Ltd and therefore, the assessee is eligible to claim depreciation on the entire cost of factory and building. On perusal of the copy of the order of the Tribunal i .....

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