The Tax Publishers2021 TaxPub(DT) 0603 (Del-Trib)

INCOME TAX ACT, 1961

Section 36(1)(va)

Where CIT(A) following the decision of High Court in the case of CIT v. AIMIL Ltd. [(2010) 321 ITR 508 (Del) : 2010 TaxPub(DT) 1231 (Del-HC)] had accepted the claim of the deduction for payments of employees' contribution to ESI/PF and accordingly restricted disallowance for payments made after the date of filing of return of income, therefore, matter was remanded back to CIT(A) for verification of claim of assessee and decide accordingly.

Business disallowance under section 36(1)(va) - Late payments towards PF/ESI contribution of employees - Allowability -

AO made disallowance for employees contribution to provident fund under section 36(1)(va). CIT(A) allowed part relief and sustained the remaining addition. Assessee submitted that all the payments for employee contribution toward provident fund was made before the due date of the filing of the return of income. Held: CIT(A) following the decision of High Court in the case of CIT v. AIMIL Ltd. [(2010) 321 ITR 508 (Del) : 2010 TaxPub(DT) 1231 (Del-HC)] had accepted the claim of the deduction for payments of employees contribution to ESI/PF and accordingly restricted the disallowance for payments made after the date of the filing of the return of income. Therefore, it would be appropriate to restore the issue back to CIT(A) for verification of the claim of the assessee and decide accordingly.

Followed:CIT v. AIMIL Ltd. (2010) 321 ITR 508 (Del) : 2010 TaxPub(DT) 1231 (Del-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2016-17



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