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2017 (12) TMI 1804 - AT - Income TaxBelated remittance of PF and ESI contribution under respective laws but within due date for filing of return of income is eligible for deduction - HELD THAT - This issue is squarely covered in favour of the assessee-company by the decision of CIT vs. Sabari Enterprises 2007 (7) TMI 169 - KARNATAKA HIGH COURT - CIT(A) following the decision of the jurisdictional High Court in the above case allowed the appeal. Therefore, we do not find any reason to interfere with the order of the CIT(A). Hence, the appeal filed by the revenue is dismissed. Disallowance u/s 14A in absence of exempt income - HELD THAT - The issue is squarely covered by the ITAT decision in the case of the assessee for the assessment years 2010-11 and 2011-12. In the light of the co-ordinate bench decision, the cross objections filed by the assessee are allowed.
Issues Involved:
1. Deduction eligibility of belated remittance of PF and ESI contribution. 2. Disallowance under section 14A in absence of exempt income. Analysis: 1. The primary issue in the present appeal was whether the belated remittance of PF and ESI contribution under respective laws, but within the due date for filing the return of income, is eligible for deduction. The Tribunal noted that this issue had been settled in favor of the assessee-company by the decision of the jurisdictional High Court in the case of CIT vs. Sabari Enterprises. The Commissioner of Income-tax (Appeals) had allowed the appeal based on this precedent, and the Tribunal found no reason to interfere with this decision. Consequently, the appeal filed by the revenue was dismissed. 2. The cross objections filed by the assessee challenged the finding of the CIT(A) that a disallowance under section 14A was warranted even in the absence of exempt income. The Tribunal referred to an ITAT decision in a previous case of the assessee for the assessment years 2010-11 and 2011-12. The Tribunal noted that in the light of this co-ordinate bench decision, the cross objections filed by the assessee were allowed. The order was pronounced in the open court on 19th December 2017.
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