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2015 (4) TMI 623 - HC - Income TaxPayment made to PF & ESI - Whether the Appellate Tribunal was right in law and on facts in not appreciating the deduction of PF & ESI collected from employees can be allowed under Section 36(1)(va) if the payment was made within due date prescribed under the relevant Acts and the provisions of Section 43B are not applicable? - Held that - Order passed by the learned tribunal is hereby quashed and set aside and the mater is remitted back to the file of the Assessing Officer with respect to the directions under Section 36(1)(va) of the Act and with a direction to the Assessing Officer to pass an appropriate order in accordance with law and on its own merits and in light of the observations / decisions of this Court in the case of Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT) and Amoli Organics (P) Ltd (2013 (11) TMI 971 - GUJARAT HIGH COURT ) as still the Assessing Officer is required to bifurcate the amount towards the employers contribution and employees contribution and is also required to consider factually, whether the employees contribution was made within the grace period or not? - Decided in favour of revenue for statistical purposes.
Issues:
1. Whether the Appellate Tribunal was right in directing the Assessing Officer to allow payment made to PF & ESI on the basis of actual payment during the relevant previous year? 2. Whether the deduction of PF & ESI collected from employees can be allowed under Section 36(1)(va) if the payment was made within the due date prescribed under the relevant Acts and the provisions of Section 43B are not applicable? Analysis: *Issue 1:* The appellant challenged the judgment of the Income Tax Appellate Tribunal (ITAT) directing the Assessing Officer to allow the payment made to PF & ESI based on actual payment during the relevant previous year. The appellant argued that the substantial questions of law in the appeal had already been addressed in a previous decision of the Division Bench of the Court. The respondent, on the other hand, contended that the matter should be remanded to the Assessing Officer for a fresh decision in light of previous court decisions. The High Court quashed the ITAT's judgment and remitted the matter back to the Assessing Officer. The Assessing Officer was directed to pass an appropriate order considering the observations and decisions of the Court in previous cases within six months. *Issue 2:* The second issue revolved around whether the deduction of PF & ESI collected from employees could be allowed under Section 36(1)(va) if the payment was made within the due date prescribed under the Acts and Section 43B provisions were not applicable. The High Court, in its judgment, set aside the ITAT's order and remitted the matter to the Assessing Officer for a fresh decision. The Assessing Officer was instructed to pass an appropriate order in accordance with the law and previous court decisions within six months, after providing an opportunity to the assessee. The Tax Appeal was allowed to the extent mentioned in the judgment, with no order as to costs. In conclusion, the High Court's judgment addressed the issues raised by the appellant regarding the payment to PF & ESI and the deduction of PF & ESI collected from employees. The Court remitted the matter back to the Assessing Officer for a fresh decision in light of previous court decisions, ensuring compliance with the law and providing an opportunity to the assessee.
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