2014 (10) TMI 916 - HC - Income Tax

Payment of P.F.,E.S.I.,Sales Tax and other statutory liabilities - Held that - The issue raised is covered by the judgement of the Hon ble Supreme Court in the case of CiT v. Alom Extrusion Ltd. (2009 (11) TMI 27 - SUPREME COURT) as well as Commissioner of Income Tax, Circle-I, Kolkata v. M/s. Vijay Shree Limited (2011 (9) TMI 30 - CALCUTTA HIGH COURT ) following the judgement in CIT v. Alom Extrusion Ltd. (2009 - TMI - 35073 - SUPREME COURT) wherein held that the amendment to the second proviso to the Sec 43(B) of the Income Tax Act, as introduced by Finance Act, 2003, was curative in nature and is required to be applied retrospectively with effect from 1st April, 1988 - Such being the position, the deletion of the amount paid by the Employees Contribution beyond due date was deductible by invoking the aforesaid amended provisions of Section 43(B) of the Act - Decided in favour of assessee. Addition under the head Air Craft Flying Rights Charges - Held that - Tribunal was justified in law in confirming the order of the CIT (A) against deletion of addition under the head Air Craft Flying Rights Charges

Summary

Issues:
1. Deduction of retainership fee
2. Deduction of Guest House Expenses
3. Payment of P.F., E.S.I., Sales Tax, and other statutory liabilities
4. Addition under the head "Air Craft Flying Rights Charges"

Analysis:

Issue 1: Deduction of Retainership Fee
The appeal questioned the justification of upholding the order of the CIT(A) in granting the deduction for retainership fee paid to M/s. Sreebala (P) Ltd. The revenue did not press this issue, indicating a lack of interest in pursuing it. Therefore, the court deemed the revenue's lack of instruction as a sign of disinterest and did not delve into this matter further.

Issue 2: Deduction of Guest House Expenses
Similarly, the appeal raised concerns about the deduction of Guest House Expenses. However, the revenue again expressed a lack of interest in pursuing this issue. As a result, the court did not address this matter any further, considering the revenue's stance on the subject.

Issue 3: Payment of P.F., E.S.I., Sales Tax, and Other Statutory Liabilities
The question of justifiability in upholding the order of the CIT(A) regarding the payment of various statutory liabilities was discussed. The court referred to judgments by the Hon'ble Supreme Court and the local court, which had already addressed and adjudicated similar issues. Given the precedents set by these judgments, the court considered this question as already resolved and did not delve into it further.

Issue 4: Addition under the Head "Air Craft Flying Rights Charges"
The final issue pertained to the addition under the head "Air Craft Flying Rights Charges." The court noted that the learned Tribunal had agreed with the reasoning of the CIT in detail regarding this matter. As a result, the court found no necessity to further examine this question and decided not to delve into it.

In conclusion, the court dismissed the application and appeal, with no order as to costs. The urgent certified copy of the order was to be provided to the parties upon application on a priority basis.