2017 (11) TMI 1696 - HC - Income Tax

Late contributions made to the Employees State Insurance Corporation (ESIC) - disallowance u/s 43B - Held that - As far as the second aspect goes, the Court notices that the assessee had established, before the lower authorities, that the disallowance was not warranted because of a one-time settlement, with the lender IDBI and, furthermore, that the relief amount had been declared as income for the concerned assessment year. Admit - Did the ITAT fall into error in deleting the amount of ₹ 6,90,055/-, having regard to the provisions of Section 36(1)(va).

Summary

The High Court of Delhi heard an appeal regarding late contributions to ESIC and disallowance under Section 43B. The court found in favor of the assessee for the disallowance issue due to a one-time settlement with IDBI. The ITAT was questioned for deleting an amount under Section 36(1)(va). The case was listed along with ITA 547/2015.