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Issues involved: Appeal against order of Learned CIT(Appeals)-I, Baroda for Assessment Year 2005-06 regarding deletion of addition on account of delayed payment to employee's contribution to P.F. and disallowance of depreciation, interest on vehicle loan, and insurance premium on vehicle.
Issue 1 - Delayed Payment to Employee's Contribution to P.F.: The Assessing Officer disallowed an amount related to employees' PF contribution, but the CIT(A) allowed the claim citing relevant precedents. The ITAT referred to various decisions, including the Apex Court's decision in Vinay Cement Ltd., and held that employees' contribution towards P.F. made before the due date of filing return is allowable under section 43B. The Revenue argued for the application of section 36(1)(va) over section 43B, but the ITAT relied on the Supreme Court's decision in CIT vs. Alom Extrusions Ltd. and upheld the CIT(A)'s decision. Issue 2 - Disallowance of Depreciation, Interest on Vehicle Loan, and Insurance Premium on Vehicle: The Assessing Officer disallowed these expenses as the vehicles were not owned by the company but by the Directors. However, the CIT(A) allowed the claim after considering that the vehicles were used for business purposes, reflected in the company's books, and there was an agreement to transfer the vehicles to the company's name. The ITAT affirmed the CIT(A)'s decision based on the evidence presented and the Supreme Court's ruling in Mysore Minerals vs. CIT. In conclusion, the ITAT dismissed the Revenue's appeal, upholding the CIT(A)'s decisions on both issues.
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