TMI Blog2016 (5) TMI 1590X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2014 (7) TMI 477 - BOMBAY HIGH COURT] are consistently taking the view that employees contribution to PF and ESI, if paid on or before the due date of filing of the return of income, is an allowable deduction. Since the assessee in the instant case has admittedly deposited the employees contribution to PF and ESI before the due date of filing of the return, a fact submitted before the AO as well as CIT(A) and not controverted by the revenue, therefore, we are of the considered opinion that no disallowance on account of such delayed payment is called for. We accordingly set aside the order of the CIT(A) and direct the AO to delete the addition. Grounds raised by the assessee allowed. - ITA No.2059/PN/2014 - - - Dated:- 27-5-2016 - SH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B but is governed by the provisions of section 36(1)(va) r.w.s. 2(24)(x) of the I.T. Act. Since the contributions were paid belatedly, the AO disallowed an amount of Rs.5,12,976/- and added the same to the total income of the assessee. 4. Before the CIT(A) the assessee reiterated more or less the same arguments. Relying on various decisions it was submitted that since the assessee has deposited the amount before the due date of filing of the return under the provisions of section 139(1), therefore, no disallowance is called for. 5. However, the CIT(A) was not satisfied with the explanation given by the assessee and upheld the action of the AO. While doing so, he held that deduction for employees contribution deposited beyond the due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n has upheld the decision of the CIT(A) deleting the disallowance made by the AO on account of delayed payment of employees contribution to PF and ESI. He accordingly submitted that the issue stands covered in faovur of the assessee since admittedly the assessee has deposited the employees contribution to PF before the due date of filing of the return of income u/s.139(1). 8. The Ld. Departmental Representative on the other hand heavily relied on the order of the CIT(A). 9. We have considered the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. There is no dispute to the fact that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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