TMI Blog2021 (11) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... an offshoot of environmental concerns. We hold that the proceeds received by the assessee is capital receipt. No reason to interfere with the order of the ld. CIT(A) and accordingly, the ground raised by the Revenue is dismissed. Belated payment towards PF ESI contribution - AO disallowed the same on the ground that the payment was delayed, which cannot be allowed under section 43B - HELD THAT:- As appellant has made the remittance of employees contribution towards PF/ESI account before the due date of filing of the Return of Income u/s 139(1) of the Act and, therefore, it is held that no disallowance can be made u/s 43B - As gone through the assessment order and appellate order and find no infirmity in the order passed by the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d subsequently, the same has been upheld by the Hon ble High Court of Andhra Pradesh reported in [2014] 46 taxmann.com 314, the ld. CIT(A) has held that the REC receipt is a capital receipt. For the sake of convenience, the relevant portion of the decision of the Hon ble High Court is reproduced as under: We have considered the aforesaid submission and we are unable to accept the same, as the learned Tribunal has factually found that Carbon Credit is not an offshoot of business but an offshoot of environmental concerns. No asset is generated in the course of business but it is generated due to environmental concerns . We agree with this factual analysis as the assessee is carrying on the business of power generation. The Carbon Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the above decision of the Hon ble Jurisdictional High Court, we hold that the proceeds received by the assessee is capital receipt. In view of the above, we find no reason to interfere with the order of the ld. CIT(A) and accordingly, the ground raised by the Revenue is dismissed. 7. So far as Ground Nos. 7 to 9, relating to belated payment of ₹.10,28,553/- towards PF ESI contribution, the Assessing Officer disallowed the same on the ground that the payment was delayed, which cannot be allowed under section 43B of the Act. On appeal, the ld. CIT(A) by considering the entire facts and circumstances of the case, observed as under: The jurisdictional High Court has considered this issue in the case of CIT vs Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F and ESI having been deposited on or before due date of filing of returns, same could not be disallowed under Section 43B or under Section 36(1)(va); SLP dismissed 6.3 The Circular No.22/2015 dated 17.12.2015 of the CBDT clarifies the allowability of employer's contribution to funds for the welfare of the employees in terms of Section 43B(b) of the Income Tax Act. 6.4 In the facts and circumstances of the case, it is clear that the appellant has made the remittance of employees contribution towards PF/ESI account before the due date of filing of the Return of Income u/s 139(1) of the Act and, therefore, it is held that no disallowance can be made u/s 43B of the Act. Hence, the disallowance of ₹ 10,28,553/- made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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